ABSTRACT
Seligman explains his use of the terms thus: "First, a tax may be imposed on some person; secondly, it may be transferred by him to a second person; thirdly, it may be ultimately borne by this second person or transferred to others by whom it is finally assumed. Not only so, but it appears to be impossible, on Seligman's definition, to draw any definite line of demarcation between the incidence of a tax and an effect of the tax. None the less, he wishes the two, incidence and effects, to be kept separate. The Colwyn Committee also attempted to establish a difference between incidence and effects, though in a different manner from Seligman. In this stationary community we assume that there already exists a tax system which includes a general income tax—general in so far as it affects income drawn from all of the industries and professions in the community.
