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The American Heritage Dictionary of Business Terms » tax incidence
tax incidence
tax incidence definition - business
tax incidence
The relative burden of a tax among different groups. For example, people with large vehicles who drive a lot of miles pay a larger than average share of a gasoline tax. Tax incidence is an important consideration in tax policy because it affects how people act. A higher gasoline tax is likely to result in people choosing to drive less and to do so in more fuel-efficient vehicles. Also called incidence of tax.
The American Heritage® Dictionary of Business Terms Copyright © 2009 by Houghton Mifflin Harcourt Publishing Company. Published by Houghton Mifflin Harcourt Publishing Company. All rights reserved.
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