Asked by Kymberly Corley on Jun 28, 2024
Verified
Economists agree that corporations always shift the corporate income tax to consumers by raising product prices.
Corporate Income Tax
A tax imposed on the net income of a corporation that is derived from its business activities.
Shift
A change in the position of the supply curve or demand curve in a market, indicating a change in market conditions.
- Assess viewpoints on the incidence of corporate income tax.
Verified Answer
ZK
Zybrea KnightJul 05, 2024
Final Answer :
False
Explanation :
Economists do not universally agree that corporations always shift the corporate income tax to consumers by raising product prices. The incidence of corporate income tax can fall on various parties including shareholders, consumers, and workers, and the extent to which it is passed on to consumers through higher prices varies depending on market conditions, the elasticity of demand and supply, and other factors.
Learning Objectives
- Assess viewpoints on the incidence of corporate income tax.