ABSTRACT
An appreciable portion of the Colwyn Report is devoted to sustained and difficult reasoning investigating the economic reactions produced by an income tax. In the course of this some improvements are introduced, which must be retained in any analysis which is made subsequently. A cardinal point in the Committee's treatment of the problem is the meaning it gives to the words, incidence and effects of taxation. "For the purpose of analysis we think it useful to follow the economists in using the term incidence of taxation in this narrow sense, distinguishing it sharply from the further effects of taxation, and dealing separately with the latter." We are now clear as to the meaning that the Committee is going to give to the words Incidence and Effects. We have criticised the Committee's definition of Incidence on the ground of obscurity that it departs from traditional usage.
