Squilliam on 23 July 2009
Actually the cost of taxation really depends on how flexible the consumers/producers are. When demand is inelastic the taxation falls most heavily on the demand side, but when demand is more elastic (ignoring supply for simplicity) the tax falls more heavily on the suppliers.
Cigarettes -> Consumers pay.
Canola oil -> Producers pay (as people can get Olive, Bran, Lard etc)
@Mafoo
1. You don't get campaign contributions taxing the rich.
2. Because like I said wayyyy earlier. The proportion of income in that group has increased substantially at the same time as the taxation level has dropped. You've proved correlation and not causation.
Tease.
