Acton Institute Powerblog

Who pays the tax?

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Note: This is the eleventh post in a weekly video series on basic microeconomics.

Who bears the burden of a tax, the buyer or the seller? Or what about the health insurance mandate in Obamacare—does the employer or the worker pay the tax? In this video, Marginal Revolution University examines these questions and explains why the more elastic side of the market tends to pay a smaller share of a tax.

(If you find the pace of the videos too slow, I’d recommend watching them at 1.5 to 2 times the speed. You can adjust the speed at which the video plays by clicking on “Settings” (the gear symbol) and changing “Speed” from normal to 1.25, 1.5 or 2.)

Previous in series: How to read a supply curve

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Joe Carter Joe Carter is a Senior Editor at the Acton Institute. Joe also serves as an editor at the The Gospel Coalition, a communications specialist for the Ethics and Religious Liberty Commission of the Southern Baptist Convention, and as an adjunct professor of journalism at Patrick Henry College. He is the editor of the NIV Lifehacks Bible and co-author of How to Argue like Jesus: Learning Persuasion from History's Greatest Communicator (Crossway).

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