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. Differential tax incidence measures the effect: a. that a tax and the expenditures it finances have
on the distribution of income. b. that one tax alone has on the distribution of income. c. on the
distribution of income of substituting one tax for another while holding the size and composition
of the budget fixed. d. on the distribution of income of substituting one tax for another while
changing the kinds of government services financed.

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  • 1. . Differential tax incidence measures the effect: a. that a tax and the expenditures it finances have on the distribution of income. b. that one tax alone has on the distribution of income. c. on the distribution of income of substituting one tax for another while holding the size and composition of the budget fixed. d. on the distribution of income of substituting one tax for another while changing the kinds of government services financed.