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The personal income tax rate that applies both to labor and capital income of households is: {tau}^h=frac{1100}{mathrm{WSSS}+mathrm{YOTH}-2000} where 1100: taxes on income, profits, and capital gains of individuals WSSS: compensation of employees YOTH: net self-employment and property income received by households 2000: total social security contributions.
The SAM built for this study included sixty-four commodities and sixty-four activities,2 four value-added components (compensation of employees, mixed income, gross operating surplus, and indirect net taxes) and four institutional sectors (households, firms, government, and the rest of the world).
Including those costs, total compensation of employees came to 54.3 percent of G.D.P.
WSSS: compensation of employees.
Compensation of private sector employees is defined as total economy compensation of employees minus compensation of government employees.
We compute compensation per employee using compensation of employees and employment data.
% of compensation of employees in collective goods Eurostat (COFOG) Total general government (GG) compensation of employees minus GG compensation of employees in health, education and social protection.
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