Reference no: EM133260109

Using economic concepts to answer this problem

The Canada Pension Plan (CPP) is a federal government program that provides people with retirement income. Either buyers of labour (employers) or sellers of labour (workers) could be taxed to pay for CPP, but instead, the tax to pay for CPP is evenly split between employers and workers. In 2022, a worker pays a tax (5.7% of their earnings) to CPP, and the employer pays a tax (5.7% of their worker's earnings) to CPP. Most people believe it sounds fair for workers and employers to split the tax bill for CPP. How would things change if the law changed, so employers no longer paid their half, and instead, workers had to pay all of the taxes for CPP? What things influence how much of the burden of the CPP tax is incurred by workers or employers? If CPP and the CPP tax were eliminated would the number of workers with jobs change?