Microeconomics help: Taxes

Microeconomics help: Taxes




Half of the payroll tax is collected from workers, and the other half is collected from

employers. If the

government wants to increase employment, it should...

A.reduce the worker half of the payroll tax.



B.reduce the employer half of the payroll tax.



C.reduce the tax on whichever side of the labor market is more price inelastic.



D.reduce the tax on whichever side of the labor market is more price elastic.



E.All of the above will have the same effect on employment.


Update 1: and why?





No Answers Posted Yet.