The government's tax policy is useful for financing public expenditures. In any country always use the instrument of tax withdrawal as a source of acceptance, in addition to other sources of resources.
The description of the division of the tax burden on the part of both the seller and the buyer as described above gives the economist a term with a tax incident.
The analysis of such issues in the microeconomics we use the demand supply device we have learned. In the curve analysis look again at: a. The decision whether the tax law affects supply or demand, b. We decide which curves are shifting, and c. Test how the shift affects equilibrium.
