IMF ev concedes it must be taxes and transfers.
2AC IMF ’14 [International Monetary Fund; Jan 23; the IMF Is a major financial agency of the United Nations, and an international financial institution, headquartered in Washington, D.C., consisting of 190 countries; IMF Policy Paper, “Fiscal Policy and Income Inequality,” http://www.imf.org/external/np/pp/eng/2014/012314.pdf]
Evaluating the redistributive impact of fiscal policies requires a comparison of incomes after taxes and transfers with those that would exist without them. In principle, assessments of the incidence of fiscal policies should incorporate information on consumers’ and producers’ behavioral responses to taxes and transfers and their impact on market incomes.12 In practice, most studies do not incorporate this aspect, since sufficient data on behavioral responses are often unavailable. In these studies, the incidence of commodity taxes is typically assumed to fall on consumers, factor taxes are assumed to fall on factor suppliers (labor and capital), and transfers to beneficiaries do not lead to changes in factor supplies.13 The evidence below is drawn from such studies. In econometric studies, on the other hand, behavioral responses are captured—Box 3 provides a summary of recent empirical literature evaluating the distributive impact of fiscal policy based on econometric analysis of cross-country panel data.