A Simulation Method to Measure the Tax Burden on Highly Skilled Manpower

Arbeitspapier

A model is presented for simulating the tax burden on highly skilled manpower. The effective average tax rate, defined as the relative wedge between total remuneration and disposable income, is computed. Income and payroll taxes and social security contributions not yielding an equivalent benefit are taken into account. The compensation package consists of cash payments and old-age provision. To integrate retirement benefits and their tax treatment, an inter-temporal approach is used. The results indicate that Germany and France have higher tax burdens than the UK and the USA, that Germany grants the strongest tax relief for families, and that occupational pension plans are favourable in all countries.

Object Details

• Language: Englisch

References and Relationships

• Bibliographic citation: Series: ZEW Discussion Papers ; No. 04-59

Classification and Topics

• Classification: Wirtschaft ; Social Security and Public Pensions ; Taxation and Subsidies: Efficiency; Optimal Taxation ; Personal Income and Other Nonbusiness Taxes and Subsidies; includes inheritance and gift taxes
• Subject: personal income tax ; highly skilled employees ; effective tax burden ; pensions ; Steuerbelastung ; Sozialversicherungsbeitrag ; Hochqualifizierte Arbeitskräfte ; Simulation ; Vergleich ; Deutschland ; Frankreich ; Grossbritannien ; Vereinigte Staaten

Contributors, Places and Time

• Event: Geistige Schöpfung
• (who): Elschner, Christina ; Schwager, Robert
• Event: Veröffentlichung
• (who): Zentrum für Europäische Wirtschaftsforschung (ZEW)
• (where): Mannheim
• (when): 2004

Further information

• Handle: http://hdl.handle.net/10419/24068
• Last update: 10.03.2025, 11:44 AM CET