Final answer:
Extra PSB tax refers to an increase in the percentage of the payroll tax or the amount to which it is applied to employees' wages and employers' contributions.
Step-by-step explanation:
Extra PSB tax refers to an increase in the percentage of the payroll tax or the amount to which it is applied to employees' wages and employers' contributions. While tax increases are unpopular among elected officials, they can generate additional revenue for the state government. However, there are also advantages that can be lost in the process. For example, tax cuts can stimulate aggregate demand and increase output in the short run, but they can reduce national savings and lower future living standards in the long run. Additionally, proponents of supply-side economics argue that tax cuts can lead to increased labor supply and total tax revenues.