Explain why the excess burden of a lump-sum tax will always be zero. Why is the payroll tax not a lump-sum tax? Show how a payroll tax affects the wages paid by employers and received by workers, assuming that it is withheld from their paychecks. Assuming that the supply of labor is not perfectly inelastic, show how the excess burden can be measured.
The Excess burden of lump-sum will always be zero.
The Excess burden of taxation is also considered as the dead weight cost.
Lump-sum taxes doesn't create taxes, do not alter economic decisions. payroll tax withholding is when an employer withhold a part of an employee's wages for taxes.
Explain why the excess burden of a lump-sum tax will always be zero. Why is the...
QUESTION 20 The federal government currently levies a 15.3 percent payroll tax (7.65 percent on both the employer and employee) on the wages of all workers. If the demand for laboris relatively elasti when compared to the inelastic supply of labor, the burden of this tax will a. be divided equally between employees and employers b. Its impossible to tell from this information c. fall primarily on employees d.tall primarily on employers.
6. Who should pay the tax? The following graph shows the labor market for research assistants in the fictional country of Universalia. The equilibrium wage is $10 per hour, and the equilibrium number of research assistants is 200. Suppose the government has decided to institute a $2-per-hour payroll tax on research assistants and is trying to determine whether the tax should be levied on the employer, the workers, or both (such that half the tax is collected from each side)....
6. Who should pay the tax? The following graph shows the labor market for research assistants in the fictional country of Universalia. The equilibrium wage is $10 per hour, and the equilibrium number of research assistants is 250. Suppose the government has decided to institute a $4.per hour payroll tax on research assistants and is trying to determine whether the tax should be levied on the employer, the workers, or both (such that half the tax is collected from each...
Need help answering this question. I need what it asks. 2. Who should pay the tax? The following graph shows the labor market for research assistants in the fictional country of Academia. The equilibrium wage is $10 per hour, and the equilibrium number of research assistants is 250. Suppose the government has decided to institute a $4-per-hour payroll tax on research assistants and is trying to determine whether the tax should be levied on the employer, the workers, or both...
b. wnosnould pay the tax? The following graph shows the labor market for research assistants in the fictional country of Universala. The equilibrium wage is $10 per hour, and the equilibrium number of research assistants is 100. Suppose the government has decided to institute a $4-per-hour payroll tax on research assistants and is trying to determine whether the tax should be levied on the employer, the workers, or both (such that half the tax is collected from each side) Use...
6. Who should pay the tax? The following graph shows the labor market for research assistants in the fictional country of Universalia. The equilibrium wage is $10 per hour, and the equilibrium number of research assistants is 250. Suppose the government has decided to institute a $4-per-hour payroll tax on research assistants and is trying to determine whether the tax should be levied on the employer, the workers, or both (such that half the tax is collected from each side)....
Homework (Ch 06) 6. Who should pay the tax? The following graph shows the labor market for research assistants in the fictional country of Collegia. The equilibrium wage is $10 per hour, and the equilibrium number of research assistants is 100.- Suppose the government has decided to Institute a $4-per-hour payroll tax on research assistants and is trying to determine whether the tax should be levied on the employer, the workers, or both (such that half the tax is collected...
Attempts: Keep the Highest: 12 6. Who should pay the tax? The following graph shows the labor market for research assistants in the fictional country of Academia. The equilibrium wage is $10 per hour, and the equilibrium number of research assistants is 250. Suppose the government has decided to institute a $4-per-hour payroll tax on research assistants and is trying to determine whether the tax should be levied on the employer, the workers, or both (such that half the tax...
6. Who should pay the tax? The follawing graph shows the labor market for research assistants in the fictional country of Collegia. The equilibrium wage is $10 per hour, and the equilbium number of research assistants is 250. Suppose the govemment has decided to institute a $4-per-hour payroll tax on research assistants and is trying to decermine whether the tax should be levied on the employer, the workers, or both (such that half the tax is collected from each side)....
Gladed Assignment Attempts: Average:/2 6. Who should pay the tax? The following graph shows the labor market for research assistants in the fictional country of Collegia. The equilibrium wage is $10 per hour, and the equilibrium number of research assistants is 100. Suppose the government has decided to institute a $4-per-hour payroll tax on research assistants and is trying to determine whether the tax should be levied on the employer, the workers, or both (such that half the tax is...