The Impact of Corporate Income Tax on Wages and Employment

Etleva Bajrami ()

Academic Journal of Economic Studies, 2017, vol. 3, issue 2, 104-109

Abstract: This paper is focused on impact of corporate tax on wages and the number of employees. Since the main goal of businesses is profit and because wages are part of the costs it’s important to understand if businesses try to cut costs by reducing wages or through reducing the number of employees. In this paper, through the analysis is intend to understand whether there is a relation between changes in corporate tax rates, the growth rate of state revenues from corporate tax with the growth rate of wages. To achieve the purpose of this paper it will also be analyzed the relation between growth rates of corporate tax with the growth rate of employment. To reach the conclusion is analyzed the progress of wages, the progress rates of corporate tax and is presented a brief overview of the economy in general because the rate of its growth will affect businesses operating there and will affect all public because a part of them is employed in the private sector. By data analysis in this paper does not seem to pass the burden of corporate tax on employees through salary or number of employees.

Keywords: Business taxes; state revenue; wage level; labor force and employment (search for similar items in EconPapers)
JEL-codes: H25 H71 J21 J31 (search for similar items in EconPapers)
Date: 2017
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Persistent link: https://EconPapers.repec.org/RePEc:khe:scajes:v:3:y:2017:i:2:p:104-109

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