Shifting

About Shifting:

Shifting and Incidence of Taxation are the determination of the economic or business entity that actually ends up paying a particular tax. Some taxes are added to the price(s) of the good(s) produced so that the incidence of the tax is actually upon the consumer of the good. Generally, the corporate income tax is absorbed by the corporation (not passed to consumers), whereas the sales tax is passed on.

See: Profit shifting.

See also the entries Income Tax and State Income Tax in the American Encyclopedia of Law.

See Indirect Tax in the U.S. Reference and Indirect Tax in the International reference.

See Sales tax in the U.S. Encyclopedia and Sales tax in the International Encyclopedia