Shifting and incidence of taxation

Shifting and incidence of taxation,

Definition of Shifting and incidence of taxation:

  1. An economic outcome of taxation that occurs when the income of a targeted group is negatively affected causing it to transfer the tax burden to another group thereby sharing the burden. For example, an additional business tax might cause businesses to increase their costs of goods sold to consumers in order to offset income lost to taxes.

Meaning of Shifting and incidence of taxation & Shifting and incidence of taxation Definition