Posts Tagged ‘burden’

Tax Incidence is…

Thursday, July 30th, 2009

Tax incidence is an economics concept that describes how the burden of paying a tax on a good is shared – the burden can fall on the buyer, the seller, or both. Taxes on retail goods are an example where the tax burden falls on both the buyer and the seller. Often, tax incidence can mean who ends up paying the tax. If consumers are paying the entire tax, then the tax incidence falls on them.