CHAPTER X

PROBLEMS OF TAX BURDEN

ROBLEMS of tax shifting and final incidence are
P among the most difficult found in taxation, as well as
in economic theory. Although a tax is paid by an
individual or a corporation, it does not follow that the burden
rests on the payer. It is generally agreed that certain kinds
of taxes cannot be shifted except under very unusual conditions,
 that other taxes are always shifted, and that taxes
which do not fall in either of these categories are shiftable in
varying degrees. Much of the theory concerning the shifting
and final incidence of taxation is speculative or hypothetical
in nature, and the research investigator must, in many cases,
approach specific problems by means of hypothetical examples.
 In other cases, it is possible to obtain data bearing
on the question, and such conclusions may be reached as the
data seem to warrant.
In the present study it is proposed to consider (1) the
burden on tangible and intangible property, (2) the burden
of the Missouri income tax with specific reference to the
arban nature of the tax, (3) the tax burden on corporations,
(4) the burden on state and national banks, and (5) the
burden of motor vehicle taxation. In some instances it will
be found that the available information is hardly sufficient to
justify any conclusions. When it is not possible to analyze a
problem thoroughly, its nature will be pointed out, and the
information necessary for its solution will be indicated.

Tue BurDEN ON TANGIBLE AND INTANGIBLE PROPERTY
It is frequently contended that tangible property, particuarly
 real estate, bears a disproportionate share of the Missouri
 state and local tax burden, and that intangible property
 is paying much less than its share. For purposes of
llustration, let us assume that A owns real estate in an
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