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Recall That Social Security Is Funded Through Payroll Taxes Levied

Question 48

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Recall that Social Security is funded through payroll taxes levied on both employers and employees.Suppose a politician were to state that since large corporations can better afford paying such taxes,the payroll tax levied on employees should be shifted to employers.Would this change cause the economic burden of the tax to be shifted from employees to employers? Explain your response.

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The second rule of tax incidence is that...

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