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The UK Parliament hires you and your colleagues to deliver a report that will enlighten the Parliament about the effect of labour market policies targeting single mothers. Prepare the report by answering the following questions.

Parliament is interested in financing the cost of their proposed childcare programme by imposing a payroll tax on workers. Some members of parliament are worried that workers will pay the entire burden of this payroll tax and propose for this tax to be imposed on firms. Address the concerns of the members of the Parliament in your report