Grok 4 on economics
My prompt:
What is the best analysis of the incidence of the corporate income tax? How much falls on capital, labor, and the consumer, respectively? In the U.S. What does it work out that way?
Here is the answer, plus my response and its follow-up. For one thing, it is the existence of the non-corporate sector, where capital may be allocated, that is key to getting off on the right foot on this question…