tax wedge

noun

The difference between the price that includes all taxes and the untaxed price of a good, particularly the difference between the employer's labour cost and the employee's take-home pay.

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Meanings

nountax wedge (plural tax wedges)

plural tax wedges

  1. economicsThe difference between the price that includes all taxes and the untaxed price of a good, particularly the difference between the employer's labour cost and the employee's take-home pay.

Translations

Finnish verokiila
  • verokiiladifference between taxed and untaxed price
German Steuerkeil
  • Steuerkeildifference between taxed and untaxed price
Italian cuneo fiscale
  • cuneo fiscaledifference between taxed and untaxed price
Swedish skattekil
  • skattekildifference between taxed and untaxed price
Cite this entry
APA

tax wedge. (n.d.). In WatkinsX Dictionary. Retrieved November 4, 2026, from https://dictionary.watkinsx.com/word/tax%20wedge

MLA

“tax wedge.” WatkinsX Dictionary, https://dictionary.watkinsx.com/word/tax%20wedge. Accessed November 4, 2026.

Chicago

WatkinsX Dictionary, s.v. “tax wedge,” accessed November 4, 2026, https://dictionary.watkinsx.com/word/tax%20wedge.

Source: tax wedge on Wiktionary, CC BY-SA 4.0.