When workers earn income,they and their employer pay equal portions of FICA (the Federal Insurance Contributions Act).Which statement is TRUE?

Question

Quizplus · Accepted Answer

The worker bears almost all of the burden of the tax because the labor market is relatively inelastic, meaning workers have less flexibility to change their labor supply in response to the tax, resulting in them bearing most of the tax burden.

When Workers Earn Income,they and Their Employer Pay Equal Portions