[2] Definition: Tax shift is a kind of economic phenomenon in which the taxpayer transfers the tax burden to the purchaser or supplier by increasing the sales price or depressing the purchase price during the process of commodity exchange.
The exchange of goods breaks through the limitations of time and area and develops on a large scale.
Under the free pricing system, the producers, operators and other market players can freely set prices according to changes in the market supply and demand relationship, and the tax burden can be passed on.
After implementing the market economy system, there is an objective shift in tax burden.
Under this system, the production and business operators of goods and other market entities have their own independent material interests.
Therefore, the phenomenon of shifting the tax burden objectively existing in the commodity economy.
In the three situations of fixed, increasing and declining costs, tax transfer has different characteristics.
Because the fixed-cost commodity does not increase or decrease its unit cost with the quantity of production.
At this time, if the demand is inelastic, the tax can be added to the price to realize the transfer.