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Author: Kevin Lang
Publisher:
ISBN:
Category : Payroll tax
Languages : en
Pages : 29
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Book Description
Under the standard competitive model, a tax change affecting workers with highly inelastic labor supply, will lower earnings by the entire nominal employer share of the tax increase. If wages play a motivational role but the market still clears, the range of possible outcomes is broader but wages should still not rise if the tax is nominally divided 50/50. In contrast, because there is excess labor (involuntary unemployment) in equilibrium, efficiency wage models resemble models in which labor supply is perfectly elastic, and thus earnings rise by more than the worker's nominal share. The 1968, 1974 and 1979 increases in the taxable earnings base for FICA provide good opportunities to test the models. This tax increase affected only those workers earning significantly more than the median earnings for male full-time/year-round workers. Such workers' labor force participation is likely to be highly inelastic. The results support models in which the motivational effects of wages are important but cannot clearly distinguish between the efficiency wage and market-clearing versions of those models
Author: Kevin Lang
Publisher:
ISBN:
Category : Payroll tax
Languages : en
Pages : 29
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Book Description
Under the standard competitive model, a tax change affecting workers with highly inelastic labor supply, will lower earnings by the entire nominal employer share of the tax increase. If wages play a motivational role but the market still clears, the range of possible outcomes is broader but wages should still not rise if the tax is nominally divided 50/50. In contrast, because there is excess labor (involuntary unemployment) in equilibrium, efficiency wage models resemble models in which labor supply is perfectly elastic, and thus earnings rise by more than the worker's nominal share. The 1968, 1974 and 1979 increases in the taxable earnings base for FICA provide good opportunities to test the models. This tax increase affected only those workers earning significantly more than the median earnings for male full-time/year-round workers. Such workers' labor force participation is likely to be highly inelastic. The results support models in which the motivational effects of wages are important but cannot clearly distinguish between the efficiency wage and market-clearing versions of those models
Author:
Publisher:
ISBN:
Category : Income tax
Languages : en
Pages : 12
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Author: John A. Brittain
Publisher:
ISBN:
Category : Political Science
Languages : en
Pages : 312
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Book Description
This book presents the first detailed analysis of the federal payroll tax and its effect on wage earners, employers, and the economy as a whole. The author puts to rest the "insurance" analogy and subjects the tax to a series of criticisms based on the judgment that tax rates on personal income should be based on ability to pay. His analysis shows that both halves of the tax - including the half nominally paid by employers - actually come out of employees' earnings. Moreover, the tax is regressive, since it takes a bigger bite from low than from high incomes and offsets the progressiveness of the personal income tax over a wide range. To correct these inequities, the author suggests alternative ways of financing the social security system without curtailing its benefits - preferably by phasing out the payroll tax and letting the income tax cover the cost of this essential social program.
Author: United States. Congress. House. Committee on Small Business
Publisher:
ISBN:
Category : Payroll tax
Languages : en
Pages : 90
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Author:
Publisher:
ISBN:
Category : Tax revenue estimating
Languages : en
Pages : 56
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Author: Mr.Alun H. Thomas
Publisher: International Monetary Fund
ISBN: 1451922744
Category : Business & Economics
Languages : en
Pages : 26
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Book Description
The paper investigates the relationship between labor taxation and unemployment in Sweden by estimating a labor market model that includes a wage-setting locus and labor demand and supply relationships. The study simulates the effect of a 1 percentage point increase in the payroll tax and in total tax rates. The increase in the payroll tax pushes up labor costs by about 1⁄2 percent over a 5–10 year time horizon. Hours worked fall by 0.5 percent and the unemployment rate rises by 0.3 percentage point. The increase in total tax rates generates a similar result. Therefore, it appears that increases in taxes have adversely affected employment and unemployment in Sweden.
Author: Joseph J. Cordes
Publisher: The Urban Insitute
ISBN: 9780877667520
Category : Business & Economics
Languages : en
Pages : 522
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Book Description
"From adjusted gross income to zoning and property taxes, the second edition of The Encyclopedia of Taxation and Tax Policy offers the best and most complete guide to taxes and tax-related issues. More than 150 tax practitioners and administrators, policymakers, and academics have contributed. The result is a unique and authoritative reference that examines virtually all tax instruments used by governments (individual income, corporate income, sales and value-added, property, estate and gift, franchise, poll, and many variants of these taxes), as well as characteristics of a good tax system, budgetary issues, and many current federal, state, local, and international tax policy issues. The new edition has been completely revised, with 40 new topics and 200 articles reflecting six years of legislative changes. Each essay provides the generalist with a quick and reliable introduction to many topics but also gives tax specialists the benefit of other experts' best thinking, in a manner that makes the complex understandable. Reference lists point the reader to additional sources of information for each topic. The first edition of The Encyclopedia of Taxation and Tax Policy was selected as an Outstanding Academic Book of the Year (1999) by Choice magazine."--Publisher's website.
Author: Patricia M. Anderson
Publisher:
ISBN:
Category : Insurance, Unemployment
Languages : en
Pages : 48
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Book Description
In this paper we theoretically and empirically examine the common, but previously unexamined, case of a firm-varying tax which is used to finance a fringe benefit. While we use data from the experience-rated unemployment insurance (UI) system, it is important to realize that differential treatment of firms (such as special considerations for small business) under mandated benefits laws leads to costs which vary across firms and are analogous to experience-rated taxes. We present a theoretical model which highlights the importance of considering this variation in taxes or costs both within and across markets. We examine annual changes in either firm average earnings and employment or individual worker earnings at the same firm. This method removes unmeasured firm and worker characteristics, and thus avoids the omitted variable bias that has plagued past work on incidence and compensating differentials. Our results suggest that most of the market level tax is borne by the worker. However, this does not imply that there are no employment effects of the tax. Rather, we find that individual firms can only pass on a small share of the within market differences in the tax they face, leading to substantial employment reallocation across firms.
Author: United States. Congress. Senate. Committee on Banking, Housing, and Urban Affairs. Subcommittee on Economic Stabilization
Publisher:
ISBN:
Category : Government publications
Languages : en
Pages : 72
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Book Description
Author: Bertil Holmlund
Publisher:
ISBN:
Category : Income tax
Languages : en
Pages : 62
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Book Description
