Economic Burden

Shifting and Incidence of Taxation
The concept of shifting and incidence of taxation refers to the determination of the economic entity that ultimately bears the tax burden. Certain taxes can be transferred to consumers through price adjustments, while others are absorbed by businesses.
Tax Incidence
Tax incidence refers to the analysis of the distribution of the tax burden between buyers and sellers. It assesses who ultimately bears the economic burden of a tax.

Accounting Terms Lexicon

Discover comprehensive accounting definitions and practical insights. Empowering students and professionals with clear and concise explanations for a better understanding of financial terms.