Economy & taxation

Do lower payroll taxes create jobs?

The test question and the possible answers

Cutting employer payroll taxes is the best way to create jobs.

What's at stake: Economists agree on one point: the effect on jobs depends on which wages are targeted. The disagreement is over the cost to social security.

The left's argument

These cuts cost social security a lot for a limited effect on employment overall.

The centre's argument

Targeted cuts on low wages, where the cost of labour really holds back hiring.

The right's argument

Labour costs hold back hiring of the less qualified. Lowering them creates jobs.

And you, where do you stand?

Answer 30 situations like this one and find out where you stand, topic by topic.

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