TY - BOOK ID - 84540683 TI - Excess Wages Tax AU - Erbas, S. AU - Tait, Alan. PY - 1995 SN - 1462360173 1455260541 1281089087 1455206954 9786613774545 PB - Washington, D.C. : International Monetary Fund, DB - UniCat KW - Labor KW - Macroeconomics KW - Corporate Taxation KW - Business Taxes and Subsidies KW - Fiscal Policies and Behavior of Economic Agents: Firm KW - Firm Behavior KW - Employment KW - Unemployment KW - Wages KW - Intergenerational Income Distribution KW - Aggregate Human Capital KW - Aggregate Labor Productivity KW - Wages, Compensation, and Labor Costs: General KW - Wages, Compensation, and Labor Costs: Public Policy KW - Labor Economics: General KW - Labour KW - income economics KW - Corporate & business tax KW - Minimum wages KW - Wage adjustments KW - Corporate income tax KW - Taxes KW - Minimum wage KW - Corporations KW - Taxation KW - Labor economics KW - Poland, Republic of KW - Income economics UR - https://www.unicat.be/uniCat?func=search&query=sysid:84540683 AB - Excess wages tax (EWT) is a tax-based incomes policy instrument introduced in many centrally-planned economies and still used in some FSU and Eastern European countries in transition. The main macroeconomic goal of EWT is to curb inflationary pressures by penalizing through taxation the “excessive” wage awards granted by enterprises in the course of wage and price liberalization. In this paper, effects of EWT on the behavior of a profit-maximizing enterprise under monopsony, its incidence on wages and profits, and its impact on inflation are analyzed. The effect of EWT on an enterprise that maximizes workers’ income is also examined with some observations on EWT’s impact on managerial behavior. Finally, recent experience with EWT is assessed and compared to that suggested by the model. ER -