Half of Social Security taxes are paid by the employer and half are paid by the employee. What would happen if the employer was made to pay the entire amount? Explain your reasoning
What will be an ideal response?
While the statutory requirement would change, nothing of economic importance would change. Since employers care about the costs of each employee (including taxes) and employees care about after-tax wages, nothing of relevance should change except the nominal wage paid by the employer will rise to reflect the tax now being paid by the employer. The after-tax wage of the employee will remain the same, however.
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Transferable permits allow emission reduction to be achieved
A) without any impact on the industrial sector, just as a standard would. B) without any impact on the industrial sector, just as fees would. C) at the lowest possible cost. D) with firms monitoring each other, rather than having the government do the monitoring. E) Both C and D are true.
It has been found that people die at a much higher rate in hospitals than in most other environments, leading some to conclude that hospitals cause death. What is the problem with this reasoning?