01817cas a2200253 a 4500 AALejournalIMF004467 230101c9999 xx r poo 0 0eng d 5.00 USD 9781451843484 1018-5941 BD-DhAAL BD-DhAAL Erbas, S. Excess Wages Tax / S. Erbas, Alan Tait. Washington, D.C. : International Monetary Fund, 1995. 1 online resource (50 pages) IMF Working Papers <strong>Off-Campus Access:</strong> No User ID or Password Required <strong>On-Campus Access:</strong> No User ID or Password Required Electronic access restricted to authorized BRAC University faculty, staff and students 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. Mode of access: Internet Tait, Alan. IMF Working Papers; Working Paper ; No. 1995/017 Full text available on IMF http://elibrary.imf.org/view/journals/001/1995/017/001.1995.issue-017-en.xml IMF e-Library