90 likes | 278 Views
Three Rules of Tax Incidence. The statutory burden of a tax does not describe who really bears the taxThe side of the market on which the tax is imposed is irrelevant to the distribution of the tax burdensParties with inelastic supply or demand bear taxes; parties with elastic supply or demand avo
E N D
1. Gruber Chapter 19 Tax Incidence Extensions
2. Three Rules of Tax Incidence The statutory burden of a tax does not describe who really bears the tax
The side of the market on which the tax is imposed is irrelevant to the distribution of the tax burdens
Parties with inelastic supply or demand bear taxes; parties with elastic supply or demand avoid them
3. Tax Incidence in Factor Markets
4. Minimum Wage
5. Balanced Budget Incidence