A cut in the payroll tax

by | Jul 27, 2021 | Homework Help

A recent editorial advocated a cut in the payroll tax, with the argument that such a tax cut would ┬ôstimulate employment, since employers shoulder half the burden of the tax.┬ö Use a graph to illustrate circumstances under which this would and would not be true.The proportion in which tax burden is shared between the buyers and the suppliers of a commodity depends on the relative elasticities of their demand and supply. Thus, in the labour market, it is…

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