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Workers, rather than firms, bear most of the burden of the payroll tax. a. true b. false

User LaCrampe
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Final answer:

Economists suggest the payroll tax burden falls more heavily on workers because employers compensate for their share through lower wages, making the statement that workers bear most of the payroll tax burden true.

The correct option is a.

Step-by-step explanation:

The question regarding whether workers bear most of the burden of the payroll tax is situated in the area of economics, which is a part of social studies. Payroll taxes are split between the employer and employee, with each contributing to programs like Social Security and Medicare.

However, it is argued by some economists that the employer's contribution is offset by paying lower wages to the employee. Therefore, in this analysis, the burden of the payroll tax falls more heavily on the worker. Considering this viewpoint, the statement that workers, rather than firms, bear most of the burden of the payroll tax, would be true.

The correct option is a.

User Mlevi
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