Acme Inc.'s property taxes increased by $19,000 this year. As a result, Acme eliminated $19,000 from its budget for the employee Christmas party. Who bears the incidence of the corporate tax increase?

Question

Quizplus · Accepted Answer

Acme's employees bear the incidence of the corporate tax increase because the funds that would have been used for their Christmas party were instead used to cover the additional tax expense.

Acme Inc'S Property Taxes Increased by $19,000 This Year