Which of the following is true about a payroll tax?

Name: Which of the following is true about a payroll tax?
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Question

Quizplus · Accepted Answer

A payroll tax reduces the net wage that employees receive, as the tax is deducted from their gross pay. This can discourage work and shift the labor supply curve to the left, leading to fewer workers being employed. Therefore, C is incorrect. A is also incorrect, as a tax on labor does not usually shift the labor supply curve to the right.

Which of the Following Is True About a Payroll Tax