Payroll tax
What is the current requirement of the law in the US in terms of the payroll tax levied on firms and workers?
Based on our discussion in the previous chapters, what are the empirical estimates of the elasticity of labor supply and labor demand?
Based on your answer in (b), who are more likely to bear the additional burden of an increased payroll tax in the United States? Workers or firms? Could this burden be shifted to the firms by assessing the increase in payroll taxes on just firms? Explain.