A senator wants to raise tax revenue and make workers better off. A staff member proposes raising

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A senator wants to raise tax revenue and make workers better off. A staff member proposes raising the payroll tax paid by firms and using part of the extra revenue to reduce the payrolltax paid by workers. Would this accomplish the senator’s goal? Explain.

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Principles of economics

ISBN: 978-0538453042

6th Edition

Authors: N. Gregory Mankiw

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