Tax Inclusive, Tax Exclusive, and Tax Bases in Between

4 Pages Posted: 26 Mar 2011


Some taxes, most notably FICA, apply to a base that is neither tax inclusive nor tax exclusive. This note provides formulas for expressing tax rates on hybrid tax bases in tax-inclusive and tax-exclusive terms, and demonstrates that obligations under the Self Employment Contributions Act fail to track obligations under FICA because of confusion about the appropriate tax base adjustment.

Keywords: Tax Base, Inclusive, Exclusive

JEL Classification: E62, H2

Suggested Citation

Listokin, Yair, Tax Inclusive, Tax Exclusive, and Tax Bases in Between. Tax Notes, Vol. 130, No. 9, February 2011, Yale Law & Economics Research Paper No. 427, Yale Law School, Public Law Working Paper No. 228, Available at SSRN:

Yair Listokin (Contact Author)

Yale Law School ( email )

P.O. Box 208215
New Haven, CT 06520-8215
United States
203-436-2567 (Phone)

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