Discussion
The distribution of the burden of paying a tax is called
Answer: B
The distribution of the burden of paying a tax is called the incidence of the tax, the third option. It looks at who finally bears the tax after it has been shifted through prices and wages. Shifting is the process by which the burden is passed on to others, which is a stage on the way to the incidence, and tax capitalization is the reduction in the price of an asset to reflect the future tax. 'Sharing of tax burden' is not a standard term.
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