Hello everyone. I'd like to explore the fundamentals of income tax and then, once I get a handle on the basics, I'd like to have a philosophical/political discussion about what would be ideal. I just graduated from highschool in a small hick town, so please have patience.
Wikipedia says:
Wikipedia says:
The first thing they say is that Tax incidence is an analysis of an effect.
That being said, lets go back a few steps:
Wikipedia says:
Ok, so what is 'tax incidence'?Income tax is a tax levied on the financial income of persons, corporations, or other legal entities. Various income tax systems exist, with varying degrees of tax incidence.
Wikipedia says:
Is it just me, or is the above description of 'tax incidence' in wikipedia ridiculously impenetrable in meaning?Tax incidence is the analysis of the effect of a particular tax on the distribution of economic welfare.
The first thing they say is that Tax incidence is an analysis of an effect.
That being said, lets go back a few steps:
Various income tax systems exist with varying degrees of analysis of the effect? :?:Various income tax systems exist, with varying degrees of tax incidence.
What do they mean by, 'the distruction of economic welfare'?Tax incidence is the analysis of the effect of a particular tax on the distribution of economic welfare.