Tax Incidence
/ˈtæks ˈɪnsɪdəns/
Definitions
- (n.) The analysis of the economic burden of a tax, determining who ultimately pays it after market adjustments.
The tax incidence shows whether the consumer or producer bears the cost of a new sales tax.
See also
Commentary
Tax incidence focuses on economic effects rather than legal liability; understanding the distinction between statutory and economic incidence is crucial in tax policy analysis.
This glossary is for general informational and educational purposes only. Definitions are jurisdiction-agnostic but reflect terminology and concepts primarily drawn from English and American legal traditions. Nothing herein constitutes legal advice or creates a lawyer-client relationship. Users should consult qualified counsel for advice on specific matters or jurisdictions.