Corporate Income Tax" Please respond to the following: Analyze the short-run and long-run impact of taxation on output, income, and the allocation of resources. Speculate the most problematic area of the taxation and suggest strategy to improve it. Explain the concept of tax incidence. Analyze how tax incidence affects economic activity. Provide an example to support your answer.

Analyze the short-run and long-run impact of taxation on output, income, and the allocation of resources. Speculate the most problematic area of the taxation and suggest strategy to improve it. The tax-induced flow of investment caused by the corporate income tax can affect output prices and wages in the long run. Over time, the output produced by the corporate sector tends to fall relative to that...