Payroll taxes distort the labor market by

Question

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Payroll taxes effectively increase the cost of employing workers, which can lead to lower net wages for workers and higher labor costs for employers. This creates a wedge between the wages that employers pay and the wages that workers receive, which can distort the labor market by reducing the incentive for workers to work and employers to hire. This can ultimately reduce employment levels and lead to inefficiencies in the labor market.

Payroll Taxes Distort the Labor Market by