3. Currently, the payroll tax for Employment Insurance and the CPP/QPP are structured (approximately) as follows: tWh if Wh S Tax = t if Wh> a. Why might the government put such a cap on the payroll tax? b. Assume that output depends on labour input as the simple sum of the number of hours worked by employees (i.e., an hour worked by an existing or new employee is equally productive). Derive the marginal cost of hiring an additional hour of labour services, depending on the number of hours worked by the employee (incorporating the payroll tax). c. Show how the structure of these taxes may affect the firm's choice between workers and hours. d. Would it be a good idea to eliminate the cap on the payroll taxes