Final answer:
Tax incidence is the term that describes the division of a tax's burden between consumers and producers, with different tax systems impacting income groups differently.
Step-by-step explanation:
The degree to which a tax falls on a particular person or group is called the tax incidence. Tax incidence refers to how the burden of a tax is divided between consumers and producers in a market. In the context of income taxation, the United States uses a progressive tax system where individuals with higher incomes pay a higher marginal tax rate, which means that as an individual's income increases, not only does he or she pay more in overall tax, but also a larger fraction of any additional income is taxed at a higher rate. Various tax systems such as progressive, regressive, and proportional taxes have different implications on how the burden is distributed among different income groups.
The degree to which a tax falls on a particular person or group is called the tax incidence. Tax incidence refers to how the burden of a tax is divided between consumers and producers.
The degree to which a tax falls on a particular person or group is called the tax incidence. Tax incidence refers to how the burden of a tax is divided between consumers and producers. It depends on the elasticity of demand and supply for the taxed good.