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The mayor of Workerville proposes a local payroll tax to fund a new water park for the city. The mayor proposes to collect half the

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The mayor of Workerville proposes a local payroll tax to fund a new water park for the city. The mayor proposes to collect half the tax from workers and half the tax from firms. The mayor will be able to successfully divide the burden of the tax equally if the demand for labor is more elastic than the supply of labor. supply of labor is more elastic than the demand for labor. O demand for labor and supply of labor are equally elastic. It is not possible for the tax burden to fall equally on firms and workers

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