Tax wedge/Definition

From Citizendium
Jump to navigation Jump to search
This article contains just a definition and optionally other subpages (such as a list of related articles), but no metadata. Create the metadata page if you want to expand this into a full article.


Tax wedge [r]: the difference between the cost of labour to employers and the take-home pay of employees; made up of the sum of personal income tax and employee plus employer social security contributions together with any payroll tax less cash transfers, expressed as a percentage of labour costs (OECD definition).