Fiscal incidence
| Part of a series on |
| Taxation |
|---|
| An aspect of fiscal policy |
In public finance, a sub-discipline of economics, fiscal incidence is the combined overall economic impact of both government taxation and expenditures on the real economic income of individuals.
While taxation reduces the economic well-being of individuals, government expenditures raise their economic well-being. Fiscal incidence is the overall impact of government taxing and spending considered together.