Tax Incidence: General Remarks Only people can bear taxes Business paying their fair share simply shifts the tax burden to different people Can study people whose total income consists of different proportions of labor earnings, capital income, and so on Sometimes appropriate to study incidence of a tax across regions4 Tax Incidence: General Remarks • Only people can bear taxes – Business paying their fair share simply shifts the tax burden to different people – Can study people whose total income consists of different proportions of labor earnings, capital income, and so on. – Sometimes appropriate to study incidence of a tax across regions