An old post from the excellent Chris Dillow.
I say it merely to emphasise the importance of the idea of tax incidence - that taxes don’t necessarily fall upon the people that they are formally levied upon. An inability to grasp this point is one of the features that distinguishes economists from non-economists.
The full post is here.
http://stumblingandmumbling.typepad.com/stumbling_and_mumbling/2010/04/corporate-tax-incidence-some-evidence.html
Here's the key point. "
92% of any rise in corporation tax falls upon wages"
