Asked Jan 22, 2019

How can tax incidences have a positive and negative impact on the economy?


Expert Answer

Step 1

Tax incidence refers to the burden of a particular tax that is imposed by the government.

Step 2

Tax incidence can have both positive and negative impact on the economy as the imposer is always the government and the burden is always on the citizens, differing sometimes between buyers and sellers.

Step 3

Positive effects

-Taxes are largely compulsory payments
-It helps in fostering economic growth
-This is used to ...

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