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Business and Economics > Corporate Taxation

You are looking at 1 - 2 of 2 items for :

  • Type: Journal Issue x
  • Wages, Compensation, and Labor Costs: Public Policy x
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Cover IMF Staff Country Reports
Italy: Selected Issues
International Monetary Fund
The Selected Issues paper provides an estimate of the output gap and potential output for Italy, and examines the sensitivity of the results to assumptions regarding employment and productivity growth. The paper focuses on the labor market more directly by examining the linkages between wage bargaining systems, regional wage differentiation, and regional unemployment disparities. It also provides an assessment of the government’s tax reform program, including its potential to increase incentives for employment and investment.
Keywords:
ISCR; CR; TFP growth; tax; dampening productivity growth; wage differentiation; employment growth; staff estimate; tax rate; Total factor productivity; Wages; Wage bargaining; Income; Output gap; Europe; Global
Cover IMF Working Papers
Excess Wages Tax
Mr. S. Nuri Erbas
and
Mr. Alan A. Tait
Excess wages tax (EWT) is a tax-based incomes policy instrument introduced in many centrally-planned economies and still used in some FSU and Eastern European countries in transition. The main macroeconomic goal of EWT is to curb inflationary pressures by penalizing through taxation the “excessive” wage awards granted by enterprises in the course of wage and price liberalization. In this paper, effects of EWT on the behavior of a profit-maximizing enterprise under monopsony, its incidence on wages and profits, and its impact on inflation are analyzed. The effect of EWT on an enterprise that maximizes workers’ income is also examined with some observations on EWT’s impact on managerial behavior. Finally, recent experience with EWT is assessed and compared to that suggested by the model.
Keywords:
WP; minimum wage; wage bill; wage award; regulation scheme; monopsonist enterprise case; enterprise profits; wage growth; Wages; Minimum wages; Wage adjustments; Corporate income tax; Eastern Europe