Does Evasion Break the Law of Tax Incidence? Point of Collection and the Pass-through of State Diesel Taxes. Erich Muehlegger, April 2015, Paper. "The canonical theory of taxation holds that the incidence of a tax is independent of the side of the market which is responsible for remitting the tax to the government. However, this prediction does not survive when the ability to evade taxes differs across economic agents. In this paper, we estimate in the context of state diesel fuel taxes how the incidence of a quantity tax depends on the point of tax collection, where the level of the supply chain responsible for remitting the tax varies across states and over time." Link