Corporation income tax shifts burden to trade unions, hindering resource allocation.
The article examines how corporation income tax affects profit behavior and income distribution. The study shows that part of the tax burden is shifted to trade unions, leading to adverse effects on income redistribution and savings. The tax can also impact resource allocation and hinder economic efficiency. The current static approach may not accurately capture the long-term effects of the tax, so a dynamic model is recommended for future research in developing countries.