Social Security tax is a tax imposed on employers and workers that is used to fund Social Security payments. Which of the following statements regarding the tax is true?
A) Employers are required to pay a greater share of the tax than workers but most economists believe the burden of the tax is shared equally.
B) Most economists believe the burden of the tax falls almost entirely on workers.
C) Parliaments always allocate the burden of the tax in a way to be greater for employers than for workers.
D) Most economists believe the burden of the tax falls mostly on employers.

Question

Quizplus · Accepted Answer

Most economists believe that the burden of the Social Security tax falls almost entirely on workers, as it affects their net income directly and can also influence wages indirectly.

Social Security Tax Is a Tax Imposed on Employers and Workers