Show or hide comments about the document.
Search over the document's text.
Share the document through social networks or e-mail.
After selecting an area on the page.
...you can:
copy the text
share the segment
comment
cite the document

Spring 2016

ISSN 0890-913X

Volume 31, Number 1

Categories: Spring 2016 | Taxation

Why Statutory Incidence Matters

Robert A. Lawson, Southern Methodist University

E. Frank Stephenson, Berry College

Download

e-mail

<< Back to editing
Previous version by
<< Older
Newer >>
Revert to this one

Edit
Cancel
Fullscreen

Show comments
Zoom:
Page: / 7

Line spacing:
Word spacing:

Search:FindClose

search results

WhyStatutoryIncidenceMattersRobertA.LawsonSouthernMethodistUniversityTheJournalofPrivateEnterprise31(1),2016,37–43E.FrankStephensonBerryCollege______________________________________________________AbstractEconomiststeachthattaxincidenceisinvarianttostatutoryincidence.Weoffertwoexamplesinwhichstatutoryincidenceaffectedtaxpolicyandarguethatstatutoryincidencemattersbecausepoliticiansenactstatutesandcourtsinterpretthem.______________________________________________________JELCodes:H22,H25,H71Keywords:statutoryincidence,economicincidence,grossreceiptstax,AffordableCareActI.IntroductionEconomistsfrequentlyclaimthattheeconomicincidenceofataxisinvarianttoitsstatutoryorlegalincidence(RosenandGayer2014,p.303).Thatis,whetherthetaxauthoritiesphysicallycollectataxfromthebuyerortheseller,theultimateimpactofthetaxonprices,quantities,andthedistributionsofthegainsfromtradewillbeidentical.Thereasonforthisisthatthepartybearingthelegalincidenceofataxmaychangehisorherbehaviorinwaysthatcausesome,orevenall,ofthetaxburdentoshifttootherparties.Forexample,taxingthesellerofanitemmaycausethesellertoraiseprices,therebyshiftingpartorallofthetaxtobuyers.Thewidelyunderstoodprice-increasingconsequencesofcigarettetaxesleviedontobaccofirmsoralcoholtaxesleviedonbeerandspiritsproducersareexamplesofthisphenomenon.Supposethestatelevieda5percenttaxonaproductorgroupofproductsandrequiredthesellertoremitthetax.Alternatively,supposethatthestatelevieda5percenttaxonaproductorgroupofproductsbutrequiredthebuyertoremitthetax.Economicsteachesthatthetruetaxburdenwouldbesameinbothcases.Whenthetaxisleviedonsellers,theypasssomeofthetaxalongtobuyersintheformofhigherpricesWhenthetaxisleviedonbuyers,theamount

GLIFOS-digital_archive

Metadata [hide]

Title	Why Statutory Incidence Matters
Authors/Creators:	Robert A. Lawson, Southern Methodist University E. Frank Stephenson, Berry College
Year:	2016
Volume:	31
Number:	1
Pages:	37 - 43
Publisher:	The Association of Private Enterprise Education
ISSN:	0890-913X
Document Type:	Articles
Keywords:	statutory incidence, economic incidence, gross receipts tax, Affordable Care Act

Citation:
Lawson, Robert A.; Stephenson, E. Frank / 2016. "Why Statutory Incidence Matters." The Journal of Private Enterprise, 31(1): 37-43.