The Mayor of Workerville Proposes a Local Payroll Tax to Fund

question 177

Multiple Choice

The mayor of Workerville proposes a local payroll tax to fund a new water park for the city.The mayor proposes to collect half the tax from workers and half the tax from firms.Workers will bear

• A)an equal share of the tax in comparison to firms.
• B)a greater share of the tax in comparison to firms.
• C)a smaller share of the tax in comparison to firms.
• D)All of the above are possible.

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Definitions:

Workers

Individuals engaged in a particular task or activity, especially in relation to their employment or contribution to the economy.

Marginal Product

The extra output obtained by utilizing an additional unit of a production input.

Additional Revenue

Income that a business generates from activities not related to its primary operations, often enhancing overall earnings.

Unit of Labor

A measure of work or effort performed by a labor force, often used in assessing productivity or efficiency.