The federal government currently levies a 15.3 percent payroll tax (7.65 percent on both the employer and employee) on the wages of all workers. If the demand for labor is relatively elastic when compared to the inelastic supply of labor, the burden of this tax will O fall primarily on employees. O fall primarily on employers. O be divided equally between employees and employers. Its impossible to tell from this information.

Microeconomics: Private and Public Choice (MindTap Course List)
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ISBN:9781305506893
Author:James D. Gwartney, Richard L. Stroup, Russell S. Sobel, David A. Macpherson
Publisher:James D. Gwartney, Richard L. Stroup, Russell S. Sobel, David A. Macpherson
ChapterST2: The Economics Of Social Security
Section: Chapter Questions
Problem 6CQ
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The federal government currently levies a 15.3 percent payroll
tax (7.65 percent on both the employer and employee) on the
wages of all workers. If the demand for labor is relatively elastic
when compared to the inelastic supply of labor, the burden of
this tax will
fall primarily on employees.
fall primarily on employers.
be divided equally between employees and employers.
O Its impossible to tell from this information.
Transcribed Image Text:The federal government currently levies a 15.3 percent payroll tax (7.65 percent on both the employer and employee) on the wages of all workers. If the demand for labor is relatively elastic when compared to the inelastic supply of labor, the burden of this tax will fall primarily on employees. fall primarily on employers. be divided equally between employees and employers. O Its impossible to tell from this information.
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