In an effort to reduce the federal government's annual deficit and provide more financial stability to the

Question:

In an effort to reduce the federal government's annual deficit and provide more financial stability to the social security programs of the country, one proposal is to raise FICA tax rates from $7.5 \%$ to $10 \%$, and to eliminate the $\$ 45,000$ maximum limitation on the amount of earnings to which the rate applies. What effect would such a proposal have on the total payroll costs of a company with five employees whose salaries are as listed below?

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