Suppose the government is concerned that research assistants already make too little money and, therefore, wants to minimize the share of the tax paid by employees. Of the three tax proposals, which is best for accomplishing this goal?

a) The proposal in which the entire tax is collected from workers.

b) The proposal in which the tax is collected from each side evenly.

c) The proposal in which the tax is collected from employers.

d) None of the proposals is better than the others.

d) None of the proposals is better than the others.

Explanation:

Suppose the government is concerned that research assistants already make too little money and wants to minimize the share of the tax paid by employees, none of the proposals is better than the others. Taxation can be best defined as the method which is used by the government to generate revenues which they can use to run the country and for the welfare of their people. Tax is collected from all the sectors, employers, employees and the businesses. If any government want to decrease the share of tax paid by employees, then d) none of the proposals is better than the others.

In option a, workers will be paying taxes and it will minimize their real income as some amount will be paid as a tax. In option b, when both employee and the employer pay tax, then the employer may reduce the salary of the employees, therefore, an employee will not be getting benefits. In option c, when all taxes will be paid by the an employer then employer may also reduce the salaries, consequently, none of the proposals is better than the others.