Most estimates suggest that workers in the United States bear about 80 to 85% of payroll taxes.
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Question:
Most estimates suggest that workers in the United States bear about 80 to 85% of payroll taxes.
(a) Given these values of tax incidence, what can you say about the elasticity of labor supply relative to the elasticity of labor demand?
(b) Policymakers are considering an increase in payroll taxes on just firms. Do you anticipate this policy will be effective in shifting the tax burden to firms?
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International Marketing And Export Management
ISBN: 9781292016924
8th Edition
Authors: Gerald Albaum , Alexander Josiassen , Edwin Duerr
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