Due to capitalization,the burden of future taxes may be borne by current owners of an inelastically?supplied,durable commodity such as land.

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Capitalization refers to the process by which the present value of future taxes is incorporated into the price of a durable commodity. In the case of an inelastically supplied durable commodity like land, the burden of future taxes may be borne by current owners as they may not be able to easily adjust the supply of land in response to changes in tax rates.

Due to Capitalization,the Burden of Future Taxes May Be Borne