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The portion of the Federal Insurance Contributions Act (FICA) tax paid by employers is 7.65 percent and the portion paidby employees is 7.65 percent (for a total of 15.3 percent).Suppose that absent FICA taxes, workers would have received a competitive equilibrium wage of 10.08 per hour. WithFICA taxes divided equally between employers and employees, the actual market wage is9.49 per hour. What is theincidence of the FICA tax? (Note: At the new market wage of 9.49 per hour, employers pay0.726 in
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