Since half of the FICA tax is paid by firms and the other half is paid by workers, the burden of the tax must fall equally on firms and workers.

Name: Since half of the FICA tax is paid by firms and the other half is paid by workers, the burden of the tax must fall equally on firms and workers.
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Question

Quizplus · Accepted Answer

The legal division of the tax does not necessarily reflect the actual economic burden, which can be shifted depending on the relative elasticities of supply and demand for labor.

Since Half of the FICA Tax Is Paid by Firms