If the entire Social Security payroll tax were paid the employees _____.
A)firms would be better off
B)more individuals would be self-employed
C)the nominal wage paid by employers would increase
D)the employees after-tax wage would fall

Question

Quizplus · Accepted Answer

If employees were responsible for the entire Social Security payroll tax, employers would likely increase the nominal wage to offset the tax burden on employees, maintaining the same overall cost of employment.

If the Entire Social Security Payroll Tax Were Paid the Employees