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In 2018, two members of Congress introduced the Stop Bad Employers by Zeroing Out Subsidies Act, legislation they hoped would increase wages of employees who were receiving government assistance. These members of Congress thought this legislation would give firms a reason to raise employee wages so fewer employees would receive the government assistance. Under the act, firms whose employees received assistance from government programs such as Medicaid and SNAP would be required to:__________.

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There are rules guiding any processes.  Under the act, firms whose employees received assistance from government programs such as Medicaid and SNAP would be required to:  

  • pay a tax equal to cost of the assistance.

What is Catherine​ Rampell, Tax Bezos. about?

In this article, Firms are said to hire a​ low-wage worker and they may be reluctant to do it because the firms would be the one to be liable for paying the tax.

The principles of taxation are clarity, stability, cost-effectiveness, and convenience.

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