Lawmakers designed the burden of the FICA payroll tax to be split evenly between workers and firms.Labor economists believe that

Question

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Labor economists generally believe that workers bear most of the burden of the FICA payroll tax. This is because firms may shift some of the burden to workers through lower wages or reduced hiring. While it is difficult to precisely measure the exact distribution of the tax burden, research suggests that workers bear a majority of the burden. Therefore, option D is the correct answer. Options A and B are not supported by data and go against mainstream economic thinking. Option C is partially true, as firms may also bear some of the burden, but it is not the main burden.

Lawmakers Designed the Burden of the FICA Payroll Tax to Be