What is meant by the term "tax incidence"?

Weldon Totaro: Tax incidence is said to "fall" upon the group that, at the end of the day, bears the burden of the tax.In case of Direct taxes, the incidence of tax is directly on the person paying the tax.For example, United States Social Security payroll taxes are paid half by the employee and half by the employer. However, economists think that the worker is bearing almost the entire burden of the tax because the employer passes the tax on in the form of lower wages. In this case, the tax incidence falls on the employee....Show more