Asked by Briana Arredondo on Jul 12, 2024
Verified
Taxes on labor tend to encourage the elderly to retire early.
Taxes on Labor
Financial charges imposed by governments on workers' income, salaries, and wages.
Elderly
Individuals who are significantly beyond the usual age for retirement, often implying an age at which they receive certain societal or economic benefits like pensions.
- Recognize the role of taxes in shaping incentives and managing the distribution of resources.
- Understand the impact of taxes on labor supply decisions.
Verified Answer
BB
Brisa BuenrostroJul 14, 2024
Final Answer :
True
Explanation :
Taxes on labor reduce the net income from working, making retirement benefits relatively more attractive, which can encourage the elderly to retire earlier than they might have without such taxes.
Learning Objectives
- Recognize the role of taxes in shaping incentives and managing the distribution of resources.
- Understand the impact of taxes on labor supply decisions.