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 employment costs 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 intertemporal approach is used. The results indicate a wide dispersion of tax rates across Europe and the US. Slovakia, Switzerland and the US tax highly skilled manpower low. Scandinavian countries, Belgium and Slovenia turn out to be high tax countries.

Object Details

• Language: Englisch

References and Relationships

• Bibliographic citation: Series: cege Discussion Papers ; No. 50

Classification and Topics

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

Contributors, Places and Time

• Event: Geistige Schöpfung
• (who): Elschner, Christina ; Schwager, Robert
• Event: Veröffentlichung
• (who): University of Göttingen, Center for European, Governance and Economic Development Research (cege)
• (where): Göttingen
• (when): 2006

Further information

• Handle: http://hdl.handle.net/10419/32013
• Last update: 10.03.2025, 11:44 AM CET