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Wage Tax (wage + tax)

Distribution by Scientific Domains
Business, Economics, Finance and Accounting100%

Selected Abstracts

Coping with Rational Prodigals: A Theory of Social Security and Savings Subsidies

ECONOMICA, Issue 289 2006
STEFAN HOMBURG
The rational prodigality argument, which often serves to justify social security, is considered in a second-best tax framework with endogenous labour supply. Rational prodigality renders the familiar policies time-inconsistent. I analyse time-consistent policies and show that a wage tax suffices to rule out prodigality as a rational strategy. However, by using savings subsidies the solution can be improved upon. The subsidies are shown to be decreasing in income. A social security system with increasing contributions is not needed in either case. [source]

Optimal Factor Taxation under Wage Bargaining: A Dynamic Perspective

GERMAN ECONOMIC REVIEW, Issue 2 2008
Erkki Koskela
Optimal taxation; imperfectly competitive labour markets; capital accumulation Abstract. We consider the issue of steady-state optimal factor taxation in a Ramsey-type dynamic general equilibrium setting with two distinct distortions: (i) taxes on capital and labour are the only available tax instruments for raising revenues and (ii) labour markets are subject to an inefficiency resulting from wage bargaining. If considered in isolation, the two distortions create conflicting demands on the wage tax, while calling for a zero capital tax. By combining the two distortions, we arrive at the conclusion that both instruments should be used, implying that the zero capital tax result in general is no longer valid under imperfectly competitive labour markets. [source]

THE EFFECTS OF TAXES ON LABOUR IN A DYNAMIC EFFICIENCY WAGE MODEL,

THE JAPANESE ECONOMIC REVIEW, Issue 3 2004
JOĆO RICARDO FARIA
This paper studies the impact of wage and employment taxes in an intertemporal efficiency wage model. Cases with fixed, linear and quadratic adjustment costs associated with job creation are considered. In general, the model shows that an increase in the employment tax leads to an increase in unemployment, reducing job creation, and has ambiguous effect on wages; whereas an increase in the wage tax reduces wages and has ambiguous impact on unemployment and job creation. [source]

Green Tax Reform and Competitiveness

GERMAN ECONOMIC REVIEW, Issue 1 2001
Erkki Koskela
This paper studies a revenue-neutral green tax reform that substitutes energy for wage taxes in an open economy with unemployment. As long as the labour tax rate exceeds the energy tax rate, such a reform will increase employment, reduce the domestic firms' unit cost of production and hence increase international competitiveness and output of the economy. The driving force behind these results is the technological substitution process that a green tax reform will bring about. The resulting reduction in unemployment is welfare increasing since energy, which the country has to buy at its true national opportunity cost, is replaced with labour, whose price is above its social opportunity cost. [source]