User:Nick Gardner /Sandbox: Difference between revisions

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The total "tax wedge" between employees' take-home pay and total labour costs to employers (including employee and employer social security contributions) ranges for most OECD countries to between 25 and 50 per cent of employers labour costs. <ref name=wedge> ''Taxing Wages 2007/2008'' Table 01  OECD, 2008 Edition[http://www.oecd.org/document/6/0,3343,en_2649_34533_42714758_1_1_1_1,00.html#table_01]</ref>
The model can be examined in words by supposing that there is a reduction in the public's propensity to save, meaning that people spend more of their money on "consumption goods". That would prompt an increase in the supply of those goods, in the total income of those employed  in their production, and thus an increase in national income.
 
The total of employees' and employers social security contributions amounts for most OECD countries to between 10 and 30 per cent of employers' labour costs<ref name=wedge/>.
 
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Revision as of 02:38, 18 November 2009

The model can be examined in words by supposing that there is a reduction in the public's propensity to save, meaning that people spend more of their money on "consumption goods". That would prompt an increase in the supply of those goods, in the total income of those employed in their production, and thus an increase in national income.

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