Principles of Microeconomics, 7th Edition

Published by South-Western College
ISBN 10: 128516590X
ISBN 13: 978-1-28516-590-5

Chapter 12 - Part IV - The Design of the Tax System - Quick Check Multiple Choice - Page 254: 6

Answer

C. workers bear some of the burden of the tax

Work Step by Step

If the corporate income tax induces businesses to reduce their capital investment, then workers bear some of the burden of the tax because the said corporation may be forced to layoff workers or by stagnant wages.
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