Microeconomics 14th Edition by James Gwartney ,Richard Stroup,Russell Sobel ,David Macpherson

Exercise 6

The Social Security payroll tax is split equally between the employee and the employer. Would it make any difference if the entire tax were imposed on employees? Would employees be helped if all the tax were imposed on employers? ( Hint: You may want to consult the section on tax incidence in Chapter 4.) *Asterisk denotes questions for which answers are given in Appendix B.