tag:blogger.com,1999:blog-3734884211497773577.post4946852012379684181..comments2024-03-22T09:27:35.860-07:00Comments on Bed buffaloes in your tax code: Banks don't pay taxes ... people pay taxes!Mary O'Keeffehttp://www.blogger.com/profile/14662977706706048151noreply@blogger.comBlogger1125tag:blogger.com,1999:blog-3734884211497773577.post-30147310308556148742010-05-08T12:43:28.507-07:002010-05-08T12:43:28.507-07:00Tax incidence is one of the most overlooked areas ...Tax incidence is one of the most overlooked areas of public policy. In short, all taxes in the long run are shifted backwards through the productive structure to lower returns on land and labor. Take VAT for example. Would this simply raise prices directly as firms "pass on" the tax? Actually no, all firms would find themselves with some percentage of higher costs. Higher costs entail less production and supply. This indirectly is what raises prices. It always goes back to land and labor.--CC1Anonymousnoreply@blogger.com