<abstract xmlns="http://www.w3.org/1999/xhtml"><p> In our paper we aim to analyze the tax wedge between labor costs and net wage, this being the main indicator for assessing the tax burden on labor. We analyze the components of the tax wedge and its evolution in time, in the OECD countries and in Romania. In this way we can get an image of the total labor cost, observing that our country belongs to countries where labor taxes have a very high level. Thus, from our analysis we showed that in Romania the tax wedge is around 42%, while the OECD average was only 35.9%. In these circumstances it is necessary to adopt certain measures for shifting the tax burden from labor to other tax bases, with the purpose of a fiscal relaxation of labor income</p></abstract>

In our paper we aim to analyze the tax wedge between labor costs and net wage, this being the main indicator for assessing the tax burden on labor. We analyze the components of the tax wedge and its evolution in time, in the OECD countries and in Romania. In this way we can get an image of the total labor cost, observing that our country belongs to countries where labor taxes have a very high level. Thus, from our analysis we showed that in Romania the tax wedge is around 42%, while the OECD average was only 35.9%. In these circumstances it is necessary to adopt certain measures for shifting the tax burden from labor to other tax bases, with the purpose of a fiscal relaxation of labor income

Labour Taxation – A Comparative Study

„Vasile Goldis” Western University of Arad, Faculty of Economics

Candidate The Bucharest Academy of Economic Studies

Studia Universitatis „Vasile Goldis” Arad – Economics Series

This work is licensed under the Creative Commons Attribution-NonCommercial-NoDerivatives 3.0 License.

{"article-title":"Labour Taxation \u2013 A Comparative Study"}

In our paper we aim to analyze the tax wedge between labor costs and net wage, this being the main indicator for assessing the tax burden on labor. We analyze...

Labour Taxation – A Comparative Study

Publié en ligne: 16 juin 2015

Pages: 1 - 15

Reçu: 01 févr. 2015

Accepté: 01 avr. 2015

DOI: https://doi.org/10.1515/sues-2015-0001

Mots clés
labor taxes, tax wedge, tax burden, social contributions

© 2015

This work is licensed under the Creative Commons Attribution-NonCommercial-NoDerivatives 3.0 License.

Labour Taxation – A Comparative Study

Publié en ligne: 16 juin 2015

Pages: 1 - 15

Reçu: 01 févr. 2015

Accepté: 01 avr. 2015

DOI: https://doi.org/10.1515/sues-2015-0001

Mots cléslabor taxes, tax wedge, tax burden, social contributions

© 2015

This work is licensed under the Creative Commons Attribution-NonCommercial-NoDerivatives 3.0 License.

Mots clés
labor taxes, tax wedge, tax burden, social contributions