Acme Incorporated and Corporate Tax Incidence
Who Bears the Incidence of the Corporate Tax Increase?
The incidence of the corporate tax increase is borne by the employees of Acme Incorporated, as they will not receive the $19,000 that was previously allocated for the employee Christmas party.
The incidence of the corporate tax increase in this case is borne by the employees of Acme Incorporated. This is because the company chose to eliminate the funds allocated for the employee Christmas party in order to cover the increased property tax expense.
The decision to eliminate the budget for the party was made by Acme, indicating that the burden of the tax increase was shifted onto the employees rather than being absorbed by the company itself.
This is an example of how corporate taxes can have indirect effects on different stakeholders, and how decisions regarding tax incidence can vary depending on the specific circumstances of a given situation.
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acme incorporated's property taxes increased by $19,000 this year. as a result, acme eliminated $19,000 from its budget for the employee christmas party. who bears the incidence of the corporate tax increase? The employees of Acme Incorporated bear the incidence of the corporate tax increase.