| Abstract: | This article investigates the price effects of indirect and corporate income taxes in the U.S. economy. It uses data from an input-output table from 1977. The lack of substantial agreement in the literature concerning the incidence of these taxes, the classical, market power and industry specific models are used in an effort to identify the plausible range of price variations caused by taxation. This investigation is enlarged with the incorporation of the differential tax incidence analysis. The usefulness of this analysis is that it can shed new light on tax reform proposals and their concomitant effects on prices, workers' purchasing power, and international trade patterns. |
