A tax on wages always increases employment because people are forced to work more to achieve the same after-tax, take-home pay.

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A tax on wages does not necessarily increase employment as it may discourage employers from hiring new employees or cause them to reduce workers' hours or wages. Additionally, some people may choose to work less or not at all if the tax makes their income too low. Therefore, the effect of a tax on wages on employment is complex and depends on various factors.

A Tax on Wages Always Increases Employment Because People Are