What does the term 'tax incidence' refer to?

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The act of transferring the tax burden to a different party.The design or framework of the tax system.The final allocation of who bears the tax burden.The assessment of how a tax affects jobs and production.

Explanation

Tax incidence describes the process where the burden of a tax is shifted from the entity legally responsible for paying it to another party. It focuses on who ultimately bears the cost of the tax, rather than the tax's structure or its broader economic effects.