Workers in the United States pay 6.2% of the first $118,500 of their earnings and employers also pay a 6.2% of the worker's first $118,500 in earnings as a Social Security tax. Which of the following is definitely true?
- The incidence of of the Social Security tax is that the workers and employers each pay an equal amount of the tax.
- Employers the full amount of the tax.
- Workers pay the full amount of the tax.
- More information is needed to determine the incidence of the tax.