Question of the Day

Who bears the economic burden of Social Security and Medicare payroll taxes paid by businesses?

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The payroll taxes paid by businesses are primarily borne by employees in the form of lower wages. As explained by the U.S. Government Accountability Office (and many other credible sources), "While employees and employers pay equal amounts in social insurance taxes, economists generally agree that employees bear the entire burden of social insurance taxes in the form of reduced wages."

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