Podcast
Questions and Answers
What determines the division of the tax burden between workers and firms?
What determines the division of the tax burden between workers and firms?
- The legislated division
- The type of tax levied
- The number of workers
- The forces of supply and demand (correct)
What is the key feature of the payroll tax?
What is the key feature of the payroll tax?
- It is only levied on workers
- It only affects firms
- It is not a type of tax
- It places a wedge between the wage that firms pay and the wage that workers receive (correct)
What happens to the wage received by workers when a payroll tax is enacted?
What happens to the wage received by workers when a payroll tax is enacted?
- It falls (correct)
- It remains the same
- It increases
- It is abolished
When a payroll tax is enacted, what happens to the wage paid by firms?
When a payroll tax is enacted, what happens to the wage paid by firms?
What is the outcome of a payroll tax in terms of the tax burden?
What is the outcome of a payroll tax in terms of the tax burden?
What is the main lesson of tax incidence in the context of a payroll tax?
What is the main lesson of tax incidence in the context of a payroll tax?
What determines how the burden of a tax is divided between buyers and sellers?
What determines how the burden of a tax is divided between buyers and sellers?
When the supply of labor is inelastic, who bears most of the burden of the payroll tax?
When the supply of labor is inelastic, who bears most of the burden of the payroll tax?
What is true about the distribution of the tax burden in the payroll tax discussed in the case study?
What is true about the distribution of the tax burden in the payroll tax discussed in the case study?
When the demand curve is inelastic and the supply curve is elastic, who bears most of the burden of the tax?
When the demand curve is inelastic and the supply curve is elastic, who bears most of the burden of the tax?
When the supply curve is inelastic and the demand curve is elastic, who bears most of the burden of the tax?
When the supply curve is inelastic and the demand curve is elastic, who bears most of the burden of the tax?
What determines who bears the burden of a tax?
What determines who bears the burden of a tax?
When the government levies a tax on buyers, what is the ultimate outcome?
When the government levies a tax on buyers, what is the ultimate outcome?
What happens when the market reaches a new equilibrium after taxation?
What happens when the market reaches a new equilibrium after taxation?
What is the purpose of the FICA tax?
What is the purpose of the FICA tax?
Who bears the burden of the FICA tax, according to Congress?
Who bears the burden of the FICA tax, according to Congress?
What percentage of earnings was the FICA tax in 2015?
What percentage of earnings was the FICA tax in 2015?
What is the worker contribution in the FICA tax?
What is the worker contribution in the FICA tax?
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