A change in the social security system which required employers to pay the full amount of the social security tax rather than the 50 percent they now pay would:
A)force the employers to bear the entire tax burden.
B)reduce the burden of the tax on the employees but not eliminate the burden completely.
C)have no effect on the portion of the tax borne by the employees and the portion borne by the employers.
D)increase the burden of the tax on the employees.

Question

Quizplus · Accepted Answer

The economic incidence of a tax does not necessarily align with the statutory incidence. Even if employers are required to pay the full amount, the actual burden may still be shared between employers and employees through adjustments in wages or employment conditions.

A Change in the Social Security System Which Required Employers