The wage wedge and the wedge-socialist tax (or tax wedge, it is sometimes incorrectly called tax wedge) are two neighboring measurements used to calculate the degree of total tax on labor income. Corner socialist-tax estimates the total cost of a worker for the company, compared to net wages received by such employee. It consists of the wedge (the cost of VAT and income tax compared to the net salary) and the corner office (cost of employee and employer social contributions) [1]. The wage wedge measures the difference between the total cost of a worker for the company and the real purchasing power remains after deductions required by the worker. The two concepts are very similar, the difference between corner and corner socialist wage-tax is to take into account the domestic terms of trade (or "internal exchange rate") between the company and the employee, that is to say the difference between consumer prices and producer prices. These concepts are also included cash transfers granted under the public welfare programs (negative income tax, for example premium for employment in France). In practice, the tax wedge is calculated by expressing the sum of tax on personal income, employee contributions and employer social security and any payroll taxes, reduced benefits as a percentage of labor costs lumber. The term represents the terms of trade and is a relatively volatile component of the wage wedge. The corner-socialist tax is more stable than the wage wedge. In literature, there is usually presented as the wedge shape (?f - 1) * 100, and even as wage wedge (?s - 1) * 100. The government has declined over the salary during the 2000s in most OECD countries, partly because of tax competition, but also will bring more people into the workforce to compensate the effects of aging on the production and national wealth [2]. For single people, the corner wage in France has declined significantly during the decade 2000-2005, and is above the OECD average and the European Union [4]. Copyright Text is available under Creative Commons Attribution Share-Alike, other conditions may apply. See Terms of Use for more details and credits graphics. If reused texts of this page, see how to cite authors and include the license. Wikipedia ® is a registered trademark of the Wikimedia Foundation, Inc.., Charitable organization governed by section 501 (c) (3) tax United States.

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