Asked by Yesenia Lazarte on Jul 08, 2024
Verified
Workers, rather than firms, bear most of the burden of the payroll tax.
Payroll Tax
Taxes imposed on employers and/or employees, typically based on the wages or salaries paid, to fund social security and healthcare programs.
Bear Burden
To carry or endure an obligation, duty, or hardship, especially in the context of paying taxes.
- Comprehend the implications of payroll taxes on employees and businesses.
Verified Answer
TN
Tiffany NguyenJul 09, 2024
Final Answer :
True
Explanation :
Economic research suggests that workers bear the majority of the burden of payroll taxes through lower wages, as firms adjust their compensation costs in response to payroll tax rates.
Learning Objectives
- Comprehend the implications of payroll taxes on employees and businesses.