I. Introduction, 38.— II. Three conflicting views concerning the incidence of employer excise and employee income taxes, 40.— III. The view that the incidence of pay roll taxes is on profits, 43.— IV. The view that the incidence of pay roll taxes is on the consumers of goods and services of the taxed industries, 53.— V. The view that the incidence of pay roll taxes is on wage rates, 57.— VI. Conclusions: pay roll taxes fall principally on wages in the long run, but a minor part will fall on profits. Interest will not be significantly affected, 61.