At first glance… look more closely please

A frequently and sadly missed point in NZ debate about tax and companies.

Mankiw writes:

“The corporate income tax shows how dangerous the flypaper theory of tax incidence can be. The corporate income tax is popular in part because it appears to be paid by rich corporations. Yet those who bear the ultimate burden of the tax—the customers and workers of corporations—are often not rich.”

From a Greg Mankiw blog debate featuring the world’s most bad mannered economist Paul Krugman.