Question

who pays the corporate tax in the global economy

who pays the corporate tax in the global economy

Homework Answers

Answer #1

Economists have long argued that when firms facing high tax rates the owners of the firms are to respond by reducing investment and lowering employment. as a result, some of the burden of the corporate tax will be shifted on to the workers in the form of lower wages, consumers in the form of higher prices or others like landowners. How much of the burden of the take will be shifted on to the workers will depend on features of the market, such as how willing they are to move locations relative to workers.

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