When Congress passed a law that imposed a tax designed to fund its Social Security and Medicare programs it wanted employers and workers to share the burden of the tax equally
Most economists who have studied the incidence of the tax have concluded
A) the tax rate should be greater for high-income workers than for low-income workers.
B) the burden of the tax falls almost entirely on workers.
C) the tax is not high enough to cover the future costs of Social Security and Medicare.
D) the tax on employers is too high because it reduces the employment of low-skilled workers.
B
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Government purchases are defined as
A) only goods purchased by federal, state, or local governments. B) all goods and services purchased by the federal government. C) all goods and services purchased by the federal or state government. D) all goods and services purchased by the federal, state, or local government. E) goods and services purchased from the government.
How did the global savings glut in the 2000s affect the U.S. current account balance?
A) It caused it to decline by increasing the value of the dollar. B) It caused it to decline by reducing the value of the dollar. C) It caused it to increase by increasing the value of the dollar. D) It caused it to increase by reducing the value of the dollar.