Money & WorkMental model

Who writes the cheque says nothing about who bears the tax.

Tax incidence separates the legal payer from the actual bearer. Whether a tax is levied on buyers or sellers does not change the outcome – elasticities decide. Whoever can least easily change their behaviour carries the larger share of the burden.

Useful: With any new levy, ask who can adjust their behaviour: the immobile side ends up paying.

Source: de.wikipedia.org

Markt Preise Steuern

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