Question

incidence into formal & effective
incidence?
O Hansen
O Hugh Dalton
O Ricardo
O Musgrave​

Answer 1

The 'incidence' of a tax refers to who bears the burden of the tax. We can distinguish between two types of tax incidence: formal incidence, meaning who is legally obliged to pay the tax, and effective incidence, meaning who actually bears the economic burden of the tax.

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