Tax incidence may be defined as the

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Tax incidence refers to the degree to which a tax falls on a particular person or group. It reflects the actual final burden of the tax, which may be different from who technically pays the tax. For example, when a tax is levied on a good, the burden of the tax may ultimately be shifted to the consumers who buy the good (in the form of higher prices) or the producers who sell the good (in the form of lower profits or wages). Thus, tax incidence is concerned with who ultimately bears the economic burden of a tax.

Tax Incidence May Be Defined as the