Sketch the diagram illustrating situation where economic

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For each $100 that an employee earns, the employer pays $4.45 in Canada Pension Plan premiums and the employee pays $4.45 in Canada Pension Plan premiums.

1.1 What is the statutory incidence of this tax?

1.2 Draw a diagram illustrating a situation where the economic incidence of the tax and the statutory incidence of the tax are the same. Explain clearly in words and using your diagram what economic incidence means.

1.3 When would the economic incidence of CPP premiums be 100% on employees? Illustrate with a diagram.

Reference no: EM13455687

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