Tax Incidence in a Vertical Supply Chain: Evidence from Cigarette Wholesale Prices

Authors

Kyle Rozema, Washington University in St. Louis School of LawFollow

Document Type

Article

Publication Date

2018

Publication Title

National Tax Law Journal

Abstract

I investigate how the burden of consumption taxes not borne by consumers is shared between upstream firms that produce a taxed good and downstream firms that sell the goods. Using novel data on monthly brand-level cigarette wholesale prices and retail prices from Nielsen homescan data, I find that downstream firms that sell cigarettes bear no more than one-third of the firm share of the tax burden.

Keywords

Tax Incidence, Consumption Taxes, Supply Chain

Publication Citation

Kyle Rozema, Tax Incidence in a Vertical Supply Chain: Evidence from Cigarette Wholesale Prices, 71 Nat’l Tax L.J. 427 (2018)

Repository Citation

Rozema, Kyle, "Tax Incidence in a Vertical Supply Chain: Evidence from Cigarette Wholesale Prices" (2018). Scholarship@WashULaw. 102.
https://openscholarship.wustl.edu/law_scholarship/102