[scotty79]

From the same paper:

"Higher marginal tax rates are associated with increases in gross wages and earnings."

The part that you cited is where they cite the old papers by other authors. They also say why conclusions of those papers might have been wrong:

"Moreover, we show that ignoring the potential labour supply response to a tax change, following the methodology of Gruber (1997) or Anderson and Meyer (1998), as well as ignoring the endogeneity of the marginal tax rate, may lead to the erroneous conclusion that the tax is fully incident on equilibrium earnings."

[verteu]

Right, the tax is partially borne by employers (who raise gross wages), and partially by workers (who receive lower net wages).

Debunking your claim:

> While in practice employers know exactly for how little money (in hand) you are willing to work and in absence of income taxes would just pay this much less so that your money in hand is the same.