Suppose that Tim is an unskilled worker who is making the market wage of $5 per hour and that the market for unskilled labor is competitive. Suppose further that the government is proposing to increase a payroll tax to fund changes to Social Security and is debating whether to levy the tax on employers or workers.

A. Assume there is no minimum wage. If Tim could lobby the government, what position should he take regarding whether the tax should be levied on employers or employees? Explain.

B. Would a $5.15 per hour minimum wage change Tim's position? Why or why not?