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Incidence of the corporate income tax is theoretically contentious, depending on whether one views it as...

Incidence of the corporate income tax is theoretically contentious, depending on whether one views

it as a tax on economic profits or a tax on capital in the corporate sector:

a. What is the incidence of the corporate income tax if it is viewed as a tax on economic profits?

Explain carefully.

b. What is the incidence of the corporate income tax if it is viewed as a tax on capital used in the

corporate sector? Explain carefully.

c. What is the excess burden of corporate income taxes if it is viewed as a tax on economic

profits? Explain your answer.

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