Question

Tax incidence is concerned with:

a. tax loopholes
c. who has the final burden of a tax
b. tax credits
d. the efficiency of the tax system Please select the best answer from the choices provided A B

Answer 1

The answer is C. Who has the final burden of a tax

Tax incidence is an analysis to see the effect of a particular tax policy on the distribution of the Economic Welfare.

for example , if the government create a tax policy to increase the tax payment of imported Rice , the one who feel the burden are the Companies who are in Rice related business and the consumers who consume it.