text:
The Little Mermaid (2018 film)
From Wikipedia, the free encyclopedia
Jump to: navigation, search
This article is about the upcoming film. For other pages with similar names, see The Little Mermaid (disambiguation).
The Little Mermaid
Directed by
Blake Harris
Chris Bouchard
Produced by
Armando Gutierrez
Robert Molloy
Written by
Blake Harris
Starring
William Moseley
Poppy Drayton
Loreto Peralta
Armando Gutierrez
Shirley MacLaine
Music by
Jeremy Rubolino
Cinematography
Neil Oseman
Edited by
Colleen Halsey
Richard Halsey
Distributed by
Netflix
Language
English
The Little Mermaid is an upcoming live-action fantasy-adventure film loosely based on the original Hans Christian Andersen novel of the same name.
Contents
[hide]
1 Plot
2 Cast
3 Production
4 Marketing and release
5 References
6 External links
Plot[edit]
The story starts with an old grandmother telling her granddaughters the story of The Little Mermaid. Despite their young age, the girls don't believe in the story, until their grandmother tells them a tale of her own. Years ago, a young reporter named Cam Harrison who had failed to earn a living sets out in search of a good story accompanied by his younger sister, Elle. There, they go to a circus and encounter a mermaid trapped in a tank. They are further amazed when the mermaid appears before them as a young woman with legs. The duo soon learn of a prophecy about a little girl born on land, blessed with the heart of a mermaid. With this ancient prophecy come to life in Elle, they are further entangled in a sinister plot of a wizard who wishes to keep the soul of the mermaid and convert it to power.
Cast[edit]
William Moseley as Cam Harrison, a reporter.[1]
Loreto Peralta as Elle, an orphan and Cam's younger sister.[citation needed]
Poppy Drayton as Elizabeth, the mermaid.[2]
Armando Gutierrez as Locke, the wizard who has enslaved the little mermaid.[citation needed]
Shirley MacLaine as Eloise, an eccentric woman who has intimate knowledge of the story of The Little Mermaid[3]
Diahann Carroll[1]
William Forsythe[1]
Gina Gershon[1]
Production[edit]
The film was originally titled A Little Mermaid.[1][2][3] Filming took place in Georgia,[2] in 2016.[citation needed]
Marketing and release[edit]
A trailer for the film debuted in March 2017 and generated over 30 million views in two weeks time.[4]
In May 2017, it was reported that the film had been picked up for distribution by Netflix and would debut on the streaming service sometime during summer 2017.[5]
References[edit]
^ Jump up to: a b c d e Pederson, Erik (March 29, 2016). "'A Little Mermaid' Beckons William Moseley, Three Others". Deadline.
^ Jump up to: a b c Ge, Linda (February 23, 2016). "'Shannara Chronicles' Star Poppy Drayton to Star in Indie 'A Little Mermaid'". TheWrap.
^ Jump up to: a b McNary, Dave (February 23, 2016). "Shirley MacLaine Starring in 'A Little Mermaid' Movie". Variety.
Jump up ^ "Watch the first trailer for the new live-action version of 'The Little Mermaid'". NME. 2017-03-10. Retrieved 2017-07-26.
Jump up ^ Streeter, Leslie Gray (May 31, 2017). "How did Boca Raton model get role in Netflix's 'The Little Mermaid'?". The Palm Beach Post. Retrieved June 10, 2017.
External links[edit]
The Little Mermaid on IMDb
Official website
[hide]
v
t
e
Hans Christian Andersen's "The Little Mermaid"
Films
The Daydreamer (1966)
The Little Mermaid (1968)
Hans Christian Andersen's The Little Mermaid (1975)
The Little Mermaid (1976 Czech film)
The Little Mermaid (1976 Russian film)
The Little Mermaid (1992)
Mermaid (2007)
The Little Mermaid (2018)
Television
Mahō no Mako-chan (1970)
Adventures of the Little Mermaid (1991)
The Idle Mermaid (2014)
Other
The Little Mermaid (statue)
Mermaids
The Lure
Disney franchise
Films
The Little Mermaid (1989)
The Little Mermaid II: Return to the Sea (2000)
The Little Mermaid: Ariel's Beginning (2003)
Series
The Little Mermaid (1992–1994)
episodes
Characters
Ariel
Ursula
Sebastian
Music
Albums
The Little Mermaid
Sebastian from The Little Mermaid
Sebastian: Party Gras!
Songs from the Sea
Splash Hits
Songs
"Fathoms Below"
"Part of Your World"
"Under the Sea"
"Poor Unfortunate Souls"
"Les Poissons"
"Kiss the Girl"
Related
The Music Behind the Magic
Adaptations
Musical
Once Upon a Time
"Ariel"
"Dark Hollow"
"The Jolly Roger"
"Poor Unfortunate Soul"
Attractions
Ariel's Grotto
Ariel's Undersea Adventure
King Triton's Carousel of the Sea
Mermaid Lagoon
Scuttle's Scooters
Voyage of the Little Mermaid
Video games
The Little Mermaid
Ariel the Little Mermaid
Ariel's Story Studio
Disney's The Little Mermaid Print Studio
Disney's The Little Mermaid Activity Center
The Little Mermaid II: Pinball Frenzy

This article needs additional or more specific categories. Please help out by adding categories to it so that it can be listed with similar articles. (June 2017)
Retrieved from "https://en.wikipedia.org/w/index.php?title=The_Little_Mermaid_(2018_film)&oldid=818939438"
Categories:
English-language films
Upcoming films
Films based on The Little Mermaid
Films based on fairy tales
Netflix original films
Hidden categories:
All articles with unsourced statements
Articles with unsourced statements from June 2017
Official website not in Wikidata
Articles needing additional categories from June 2017
Navigation menu
Personal tools
Not logged in
Talk
Contributions
Create account
Log in
Namespaces
Article
Talk
Variants
Views
Read
Edit
View history
More
Search
Navigation
Main page
Contents
Featured content
Current events
Random article
Donate to Wikipedia
Wikipedia store
Interaction
Help
About Wikipedia
Community portal
Recent changes
Contact page
Tools
What links here
Related changes
Upload file
Special pages
Permanent link
Page information
Wikidata item
Cite this page
Print/export
Create a book
Download as PDF
Printable version
Languages
Русский
Edit links
This page was last edited on 6 January 2018, at 13:54.
Text is available under the Creative Commons Attribution-ShareAlike License; additional terms may apply. By using this site, you agree to the Terms of Use and Privacy Policy. Wikipedia® is a registered trademark of the Wikimedia Foundation, Inc., a non-profit organization.
Privacy policy
About Wikipedia
Disclaimers
Contact Wikipedia
Developers
Cookie statement
Mobile view
Enable previews

values: mw-page-base noprint

values: mw-head-base noprint

values: firstHeading firstHeading en

values: siteSub noprint

values: jump-to-nav mw-jump

attrs: role class

values:
note
hatnote navigation-not-searchable

attrs: scope style

value: li

value: ul

values: This claim needs references to reliable sources. (June 2017)

values:
noprint Inline-Template Template-Fact
white-space:nowrap;

values:
reflist mw-references-wrap
list-style-type: decimal;

values:
nofollow
http://www.imdb.com/title/tt5493944/
external text

values:
nofollow
external text
http://TheLittleMermaid.tv

values: Hans Christian Andersen's The Little Mermaid (1975 film)

values: List of Disney's The Little Mermaid characters

values: The Little Mermaid: Ariel's Undersea Adventure

values: nowraplinks collapsible autocollapse navbox-inner

values: plainlinks metadata ambox ambox-style ambox-cat_improve

values: Category:Films based on The Little Mermaid

values: Category:All articles with unsourced statements

values: Category:Articles with unsourced statements from June 2017

values: Category:Official website not in Wikidata

values: Category:Articles needing additional categories from June 2017

values: Discussion about edits from this IP address [ctrl-alt-n]

values: A list of edits made from this IP address [ctrl-alt-y]

values: You are encouraged to create an account and log in; however, it is not mandatory

values: You're encouraged to log in; however, it's not mandatory. [ctrl-alt-o]

values:
/wiki/The_Little_Mermaid_(2018_film)
View the content page [ctrl-alt-c]
c

values: Discussion about the content page [ctrl-alt-t]

values: p-namespaces navigation vectorTabs p-namespaces-label

values:
p-variants
navigation
vectorMenu emptyPortlet
p-variants-label

values: Past revisions of this page [ctrl-alt-h]

values: p-views navigation vectorTabs p-views-label

values:
p-cactions
navigation
vectorMenu emptyPortlet
p-cactions-label

values:
mw-wiki-logo
/wiki/Main_Page
Visit the main page

values:
/wiki/Main_Page
Visit the main page [ctrl-alt-z]
z

values: Featured content – the best of Wikipedia

values: Find background information on current events

values:
/wiki/Special:Random
Load a random article [ctrl-alt-x]
x

values: portal navigation p-navigation p-navigation-label

values:
uls-settings-trigger
Language settings
0
button
true

values: Русалочка (фильм, 2017) – Russian

values: /static/images/wikimedia-button-1.5x.png 1.5x, /static/images/wikimedia-button-2x.png 2x

values: /static/images/poweredby_mediawiki_132x47.png 1.5x, /static/images/poweredby_mediawiki_176x62.png 2x

values:
suggestions
display: none; font-size: 13px;

values: mediawiki ltr sitedir-ltr mw-hide-empty-elt ns-0 ns-subject page-The_Little_Mermaid_2018_film rootpage-The_Little_Mermaid_2018_film skin-vector action-view


text:
Buffalo Bill (character)
From Wikipedia, the free encyclopedia
Jump to: navigation, search
Jame "Buffalo Bill" Gumb
Hannibal Lecter character
Created by
Thomas Harris
Portrayed by
Ted Levine
Information
Aliases
John Grant
Jack Gordon
Gender
Male
Jame Gumb (known by the nickname Buffalo Bill) is a character and the primary antagonist of Thomas Harris's 1988 novel The Silence of the Lambs and its 1991 film adaptation, in which he is played by Ted Levine. In the film and the novel, he is a serial killer who murders overweight women and skins them so he can make a "woman suit" for himself.
Contents
[hide]
1 Overview
1.1 Background
1.2 Modus operandi
2 Influences
3 Analysis
4 Controversy
5 References
Overview[edit]
Background[edit]
According to the novel, Gumb was born in California on October 25, 1949, and abandoned by his mother – an alcoholic sex worker who misspelled "James" on his birth certificate – and taken into foster care at age two. The screenplay omits Gumb's backstory, but does imply that he had a traumatic childhood. Lecter summarizes Gumb's life thus: "Billy was not born a criminal, but made one by years of systematic abuse."
The novel goes on to tell of Gumb living in foster homes until the age of 10 before being adopted by his grandparents, who became his first victims. The story then puts him in Tulare Vocational Rehabilitation, a psychiatric hospital where he learns to be a tailor. Later, Gumb has a relationship with Benjamin Raspail. After Raspail leaves him, he kills Raspail's new lover, Klaus, and flays him.[1]
Both the novel and film depict Gumb as a tortured and self-hating individual. Believing himself to be transgender, he wants to become a woman but is too psychologically disturbed to qualify for gender reassignment surgery. He kills women so he can skin them and create a "woman suit" for himself.
Modus operandi[edit]
Gumb's modus operandi is to approach a woman, pretending to be injured and asking for help, then knock her out in a surprise attack and kidnap her. He takes her to his house and leaves her in a well in his basement, where he starves her until her skin is loose enough to easily remove. In the first two cases, he leads the victims upstairs, slips nooses around their necks and pushes them from the stairs, strangling them. He then skins parts of their body (a different section on each victim), and then dumps each body into a different river, destroying any trace of evidence. This MO caused the homicide squad to nickname him Buffalo Bill (Buffalo Bill's Wild West show typically claimed that Buffalo Bill Cody had scalped a Cheyenne warrior). One officer quipped it was because he "skins his humps." In the case of Gumb's first victim, Fredrica Bimmel, he weighed down her body, so she ends up being the third victim found. In the case of the fourth victim, he shoots her instead of strangling her, then inserts a moth into her throat and dumps the body.[1]
At the start of the novel, Gumb has already murdered five women. Behavioral Science Unit Chief Jack Crawford assigns gifted trainee Clarice Starling to question incarcerated serial killer Hannibal Lecter about the case. (Lecter had met Gumb while treating Raspail.) When Gumb kidnaps Catherine Martin, the daughter of U.S. Senator Ruth Martin, Lecter offers to give Starling a psychological profile of the killer in return for a transfer to a federal institution; this profile is mostly made up of cryptic clues designed to help Starling figure it out for herself, although Lecter does directly inform Clarice about Gumb wanting to have a sex change operation. This is highlighted in one of the most famous scenes from the movie where Gumb dances to the song "Goodbye Horses" by Q Lazzarus, putting on makeup and other women's accessories to complete his "transformation" into a woman. Starling eventually deduces from Lecter's riddles that Gumb knew his first victim, Frederica Bimmel, and goes to Bimmel's hometown of Belvedere, Ohio to gather information. By this time, Crawford has already found out the killer's true identity and gone with a SWAT team to his house to arrest him, but they find that it is only a business address. Meanwhile, Starling goes to the home of Bimmel's employer, Mrs. Lippman, only to find Gumb — calling himself "Jack Gordon" — living there. (Gumb had murdered Mrs. Lippman earlier.) When Starling sees a moth flutter by, she realizes she has found her man and orders him to surrender. Gumb flees into the basement and stalks her with a revolver and night vision goggles. Just as he is about to shoot Starling, she hears him behind her, turns around and opens fire, killing him.
Influences[edit]
Harris based various elements of Gumb's MO on six real-life killers:[2][3]
Jerry Brudos, who dressed up in his victims' clothing and kept their shoes.
Edward Gein, who fashioned trophies and keepsakes from the bones and skin of corpses he dug up at cemeteries. He also made a female skin suit and skin masks.
Ted Bundy, who pretended to be injured (using an arm-brace or crutches) as a ploy to ask his victims for help. When they helped him, he incapacitated and killed them, dumping their bodies far away.
Gary M. Heidnik, who kidnapped and tortured six women and held them prisoner as sex slaves.
Edmund Kemper, who, like Gumb, killed his grandparents as a teenager "just to see what it felt like."
Gary Ridgway, the Green River Killer (still unidentified at the time of the novel's writing), who, like Gumb, dumped women's bodies in rivers and inserted foreign objects into their corpses.
Analysis[edit]
Marjorie Garber, author of Vested Interests: Cross-Dressing and Cultural Anxiety, asserts that despite the book and the film indicating that Buffalo Bill merely believes himself to be transsexual, they still imply negative connotations about transsexualism. Garber says, "Harris's book manifests its cultural anxiety through a kind of baroque bravado of plot," and calls the book "a fable of gender dysphoria gone spectacularly awry".[4]
Barbara Creed, writing in Screening the Male: Exploring Masculinities in the Hollywood Cinema, says that Buffalo Bill wants to become a woman "presumably because he sees femininity as a more desirable state, possibly a superior one". For Buffalo Bill, the woman is "[a] totem animal". Not only does he want to wear women's skin, he wants to become a woman; he dresses in women's clothes and tucks his penis behind his legs to appear female. Creed writes, "To experience a rebirth as woman, Buffalo Bill must wear the skin of woman not just to experience a physical transformation but also to acquire the power of transformation associated with woman's ability to give birth." Buffalo Bill wears the skin of his totem animal to assume its power.[5]
Judith Halberstam, author of Skin Shows: Gothic Horror and the Technology of Monsters, writes, "The cause for Buffalo Bill's extreme violence against women lies not in his gender confusion or his sexual orientation but in his humanist presumption that his sex and his gender and his orientation must all match-up to a mythic norm of white heterosexual masculinity." Halberstam says Buffalo Bill symbolizes a lack of ease with one's skin. She writes that the character is also a combination of Victor Frankenstein and his monster in how he is the creator gathering body parts and experimenting with his own body. Halberstam writes, "He does not understand gender as inherent, innate; he reads it only as a surface effect, a representation, an external attribute engineered into identity." Buffalo Bill challenges "the interiority of gender" by taking skin and remaking it into a costume.[6]
Controversy[edit]
The film adaptation of Silence of the Lambs was criticized by some gay rights groups for its portrayal of Gumb as bisexual and transgender.[7] A Johns Hopkins sex-reassignment surgeon, present in the book but not the film (his scene was deleted and is found in bonus materials on the DVD), protests exactly the same thing. FBI Director Jack Crawford pacifies him by repeating that Gumb is not in fact transsexual, but merely believes himself to be. In the film, a similar scene is shown with Starling and Lecter in the same roles as the surgeon and Crawford, respectively. In the director's commentary for the 1991 film, director Jonathan Demme draws attention to various Polaroids taken of Buffalo Bill in the company of strippers; these are visible in Gumb's basement in the film.
References[edit]
^ Jump up to: a b Harris, Thomas (1991). The Silence Of The Lambs. St. Martin's Paperbacks. ISBN 0-312-92458-5.
Jump up ^ Bruno, Anthony. "Buffalo Bill" page 2 - "All About Hannibal Lecter - Facts and Fiction" Archived October 11, 2008, at the Wayback Machine. @ Crime Library.com
Jump up ^ Bowman, David (July 8, 1999)."Profiler". Salon.
Jump up ^ Garber, Marjorie (1997). Vested Interests: Cross-dressing and Cultural Anxiety. Routledge. p. 116. ISBN 978-0-415-91951-7.
Jump up ^ Creed, Barbara (1993). "Dark Desires: Male masochism in the horror film". In Cohan, Steven; Hark, Ina Rae. Screening the Male: Exploring Masculinities in the Hollywood Cinema. Routledge. pp. 126–127. ISBN 978-0-415-07759-0.
Jump up ^ Halberstam, Judith (1995). "Skinflick: Posthuman Gender in Jonathan Demme's The Silence of the Lambs". Skin Shows: Gothic Horror and the Technology of Monsters. Duke University Press Books. ISBN 978-0-8223-1663-3.
Jump up ^ Common Sense Media review of The Silence of the Lambs Common Sense Media. July 11, 2005
[hide]
v
t
e
Thomas Harris' Hannibal Lecter
Characters
Hannibal Lecter
Will Graham
Clarice Starling
Jack Crawford
Frederick Chilton
Francis Dolarhyde
Buffalo Bill
Mason Verger
Freddy Lounds
Bedelia Du Maurier
Novels
Red Dragon (1981)
The Silence of the Lambs (1988)
Hannibal (1999)
Hannibal Rising (2006)
Films
Manhunter (1986)
The Silence of the Lambs (1991)
Hannibal (2001)
Red Dragon (2002)
Hannibal Rising (2007)
Television
Hannibal (2013–15)
episodes
"Apéritif"
"Amuse-Bouche"
"Potage"
"Oeuf"
Related productions
The Silence of the Hams (1994)
Silence! The Musical (2005)
Retrieved from "https://en.wikipedia.org/w/index.php?title=Buffalo_Bill_(character)&oldid=843199126"
Categories:
Hannibal Lecter
Characters in American novels of the 20th century
Fictional characters based on real people
Fictional characters introduced in 1988
Fictional characters from California
Fictional characters with psychiatric disorders
Fictional bisexual males
Fictional cross-dressers
Fictional kidnappers
Fictional LGBT characters in film
Fictional serial killers
Fictional torturers
Fictional victims of child abuse
Horror film characters
Literary villains
Male characters in film
Male characters in literature
Transgender in film
Hidden categories:
Webarchive template wayback links
Navigation menu
Personal tools
Not logged in
Talk
Contributions
Create account
Log in
Namespaces
Article
Talk
Variants
Views
Read
Edit
View history
More
Search
Navigation
Main page
Contents
Featured content
Current events
Random article
Donate to Wikipedia
Wikipedia store
Interaction
Help
About Wikipedia
Community portal
Recent changes
Contact page
Tools
What links here
Related changes
Upload file
Special pages
Permanent link
Page information
Wikidata item
Cite this page
Print/export
Create a book
Download as PDF
Printable version
Languages
Español
한국어
Italiano
Norsk
Polski
Edit links
This page was last edited on 27 May 2018, at 15:32.
Text is available under the Creative Commons Attribution-ShareAlike License; additional terms may apply. By using this site, you agree to the Terms of Use and Privacy Policy. Wikipedia® is a registered trademark of the Wikimedia Foundation, Inc., a non-profit organization.
Privacy policy
About Wikipedia
Disclaimers
Contact Wikipedia
Developers
Cookie statement
Mobile view
Enable previews

key: html

type: local

value: div

attrs: id class

values: mw-page-base noprint

values: mw-head-base noprint

value: a

attrs: id class lang

values: firstHeading firstHeading en

values: siteSub noprint

values: jump-to-nav mw-jump

value: th

attrs: colspan style

values: text-align:center;font-size:125%;font-weight:bold;background: #001; color: #FFFFFF;

value: tr

attrs: href title

value: i

value: td

values: text-align:center;background: #001; color: #FFFFFF;

values:
infobox
width:22em;border-spacing: 2px 5px;

values:
/wiki/Gender_reassignment_surgery
mw-redirect
Gender reassignment surgery

values:
/wiki/Buffalo_Bill_Cody
mw-redirect
Buffalo Bill Cody

values:
/wiki/Norm_(social)
mw-redirect
Norm (social)

values:
reflist mw-references-wrap
list-style-type: decimal;

values: col navbox-title 2 background:lightgrey;

values: nowraplinks collapsible autocollapse navbox-inner

values: Category:Characters in American novels of the 20th century

values: Category:Fictional characters based on real people

values: Category:Fictional characters introduced in 1988

values: Category:Fictional characters from California

values: Category:Fictional characters with psychiatric disorders

values: Category:Fictional LGBT characters in film

values: Category:Fictional victims of child abuse

values: Category:Webarchive template wayback links

values: Discussion about edits from this IP address [ctrl-alt-n]

values: A list of edits made from this IP address [ctrl-alt-y]

values: You are encouraged to create an account and log in; however, it is not mandatory

values: You're encouraged to log in; however, it's not mandatory. [ctrl-alt-o]

values:
/wiki/Buffalo_Bill_(character)
View the content page [ctrl-alt-c]
c

values: Discussion about the content page [ctrl-alt-t]

values: Guidance on how to use and edit Wikipedia

values: About the project, what you can do, where to find things

values: A list of recent changes in the wiki [ctrl-alt-r]

values: portal navigation p-interaction p-interaction-label

values: List of all English Wikipedia pages containing links to this page [ctrl-alt-j]

values: Recent changes in pages linked from this page [ctrl-alt-k]

values:
/wiki/Wikipedia:File_Upload_Wizard
Upload files [ctrl-alt-u]
u

values: A list of all special pages [ctrl-alt-q]

values: Permanent link to this revision of the page

values: Link to connected data repository item [ctrl-alt-g]

values: Printable version of this page [ctrl-alt-p]

values:
https://es.wikipedia.org/wiki/Jame_Gumb
Jame Gumb – Spanish
es
es
interlanguage-link-target

values:
https://it.wikipedia.org/wiki/Jame_Gumb
Jame Gumb – Italian
it
it
interlanguage-link-target

values:
https://no.wikipedia.org/wiki/Jame_Gumb
Jame Gumb – Norwegian
no
no
interlanguage-link-target

values:
https://pl.wikipedia.org/wiki/Jame_Gumb
Jame Gumb – Polish
pl
pl
interlanguage-link-target

values: mediawiki ltr sitedir-ltr mw-hide-empty-elt ns-0 ns-subject page-Buffalo_Bill_character rootpage-Buffalo_Bill_character skin-vector action-view


text:
Payroll tax
From Wikipedia, the free encyclopedia
Jump to: navigation, search
Taxation
An aspect of fiscal policy
Policies[show]
Government revenue
Tax revenue
Non-tax revenue
Tax law
Tax bracket
Tax threshold
Exemption
Credit
Deduction
Tax shift
Tax cut
Tax holiday
Tax advantage
Tax incentive
Tax reform
Tax harmonization
Tax competition
Double taxation
Representation
Unions
Medical savings account
Tax, tariff and trade
Economics[show]
Price effect
Excess burden
Tax incidence
Laffer curve
Optimal tax
Theory
Optimal capital income taxation
Collection[show]
Revenue service
Revenue stamp
Tax assessment
Taxable income
Tax lien
Tax refund
Tax shield
Tax residence
Tax preparation
Tax investigation
Tax shelter
Private tax collection
Tax farming
Noncompliance[show]
Tax avoidance
Tax evasion
Tax resistance
Tax haven
Smuggling
Black market
Transfer mispricing
Unreported employment
Tax shelter
Distribution[show]
Tax rate
Progressive
Regressive
Proportional
Types[show]
Direct
Indirect
Per unit
Ad valorem
In rem
Capital gains
Carbon
Consumption
Dividend
Ecotax
Excise
Fuel
Georgist
Gift
Gross receipts
Income
Inheritance (estate)
Land value
Payroll
Pigovian
Property
Sales
Sin
Single
Stamp
Steering
Turnover
Value-added (VAT)
Corporate profit
Excess profits
Windfall profits
Negative (income)
Flat
Wealth
International[show]
Financial transaction tax
Currency transaction tax
Tobin tax
Spahn tax
Tax equalization
Tax treaty
Permanent establishment
Transfer pricing
European Union FTT
Foreign revenue rule
Trade[show]
Custom
Duty
Tariff
Import
Export
Tariff war
Free trade
Free trade zone
Trade agreement
Religious[show]
Church tax
Eight per thousand
Teind
Tithe
Fiscus Judaicus
Leibzoll
Temple tax
Tolerance tax
Jizya
Kharaj
Khums
Nisab
Zakat
By country[show]
List of countries by tax rates
Tax revenues as %GDP
Albania
Algeria
Argentina
Australia
Azerbaijan
Bangladesh
Bhutan
Bulgaria
BVI
Canada
China
Colombia
Denmark
France
Germany
Greece
Iceland
India
Indonesia
Iran
Ireland
Israel
Italy
Japan
Kazakhstan
Lithuania
Malta
Namibia
Netherlands
New Zealand
Norway
Pakistan
Palestine
Peru
Philippines
Poland
Russia
Singapore
South Africa
Sweden
Switzerland
Taiwan
Tanzania
United Kingdom
United States
Uruguay
v
t
e
Payroll taxes are taxes imposed on employers or employees, and are usually calculated as a percentage of the salaries that employers pay their staff.[1] Payroll taxes generally fall into two categories: deductions from an employee’s wages, and taxes paid by the employer based on the employee's wages. The first kind are taxes that employers are required to withhold from employees' wages, also known as withholding tax, pay-as-you-earn tax (PAYE), or pay-as-you-go tax (PAYG) and often covering advance payment of income tax, social security contributions, and various insurances (e.g., unemployment and disability). The second kind is a tax that is paid from the employer's own funds and that is directly related to employing a worker. These can consist of fixed charges or be proportionally linked to an employee's pay. The charges paid by the employer usually cover the employer's funding of the social security system, medicare, and other insurance programs. The economic burden of the payroll tax falls almost entirely on the worker, regardless of whether the tax is remitted by the employer or the employee, as the employers’ share of payroll taxes is passed on to employees in the form of lower wages than would otherwise be paid.[1][2][3][4] Because payroll taxes fall exclusively on wages and not on returns to financial or physical investments, payroll taxes may contribute to underinvestment in human capital such as higher education.[1]
Contents
[hide]
1 National payroll tax systems
1.1 Australia
1.2 Bermuda
1.3 Brazil
1.4 Canada
1.5 China
1.6 Croatia
1.7 France
1.8 Germany
1.9 Greece
1.10 Hong Kong
1.11 Sweden
1.12 United Kingdom
1.13 United States
1.13.1 Income tax withholding
1.13.2 Social Security and Medicare taxes
1.13.3 Unemployment taxes
1.13.4 Reporting and payment
1.13.5 Penalties
2 See also
3 References
4 External links
National payroll tax systems[edit]
Australia[edit]
See also: Taxation in Australia § Payroll taxes
The Australian federal government (ATO) requires withholding tax on employment income (payroll taxes of the first type), under a system known as pay-as-you-go (PAYG).
The individual states impose payroll taxes of the second type.
Bermuda[edit]
In Bermuda, payroll tax accounts for over a third of the annual national budget, making it the primary source of government revenue.[5] The tax is paid by employers based on the total remuneration (salary and benefits) paid to all employees, at a standard rate of 14% (though, under certain circumstances, can be as low as 4.75%). Employers are allowed to deduct a small percentage of an employee's pay (around 4%).[6] Another tax, social insurance, is withheld by the employer.
Brazil[edit]
See also: Taxation in Brazil
In Brazil employers are required to withhold 11% of the employee's wages for Social Security and a certain percentage as Income Tax (according to the applicable tax bracket). The employer is required to contribute an additional 20% of the total payroll value to the Social Security system. Depending on the company's main activity, the employer must also contribute to federally funded insurance and educational programs.
There is also a required deposit of 8% of the employee's wages (not withheld from him) into a bank account that can be withdrawn only when the employee is fired, or under certain other extraordinary circumstances, such as serious illness (called a "Security Fund for Duration of Employment"). All these contributions amount to a total tax burden of almost 40% of the payroll for the employer and 15% of the employee's wages.
Canada[edit]
See also: Taxation in Canada § Payroll taxes
The Northwest Territories in Canada applies a payroll tax of 2% to all employees. It is an example of the second type of payroll tax, but unlike in other jurisdictions it is paid directly by employees rather than employers. Unlike the first type of payroll tax as it is applied in Canada, though, there is no basic personal exemption below which employees are not required to pay the tax.[7]
Ontario applies a health premium tax to all payrolls on a sliding scale up to $900 per year.[8]
China[edit]
See also: Taxation in China
In China, the payroll tax is a specific tax which is paid to provinces and territories by employers, not by employees. The tax is deducted from the worker's pay. The Chinese Government itself requires only one tax to be withheld from paychecks: the PAYG (or pay-as-you-go) tax, which includes medicare levies.
Croatia[edit]
See also: Taxation in Croatia
In Croatia, the payroll tax is composed of several items:
national tax on personal income (Croatian: porez na dohodak), which is applied incrementally with rates of 0% (personal exemption), 24%, 39%
optional local surcharge on personal income (Croatian: prirez), which is applied by some cities and municipalities on the amount of national tax, currently up to 18% (in Zagreb)
pension insurance (Croatian: mirovinsko osiguranje), universal 20%, for some people divided into two different funds, one of which is government-management (15%) and the other is a selected pension fund (5%)
health and unemployment insurance (Croatian: zdravstveno osiguranje), divided into 15% for general health insurance, 0.5% for work-related accident insurance, and 1.7% for unemployment insurance
France[edit]
See also: Taxation in France
In France statutory payroll tax only covers employee and employer contributions to the social security system. Income tax deductions from the payroll are voluntary and may be requested by the employee, otherwise employees are billed 2 mandatory income tax prepayments during the year directly by the tax authority (set at 1/3 of the prior year's final tax bill). Employee payroll tax is made up of assigned taxes for the three branches of social security system and includes both basic and supplementary coverage. Different percentages apply depending on thresholds that are multiples of the social security earnings ceiling (in 2012 = 36,372 euro per year).[9]
Contributions for salaries between the minimum wage and 1.6 times the minimum wage are eligible to relief (known as Fillon relief) of up to 28 percentage points of employer contributions, effectively halving employer non-wage costs.[10]
Tax covering
Employee
Employer
Total social security contributions
Medical, Maternity, Invalidity, Death, Solidarity 0.75% 13.1%
Child Benefits None 5.4%
Old Age minimum 6.75% 9.90%
Unemployment 2.40% 4.00%
Insolvency 0.30%
Old Age branch supplementary (minimum) 6.65% 8.3%
General social tax 7.50% none
Social security debt reimbursal levy 0.50% none
Tax payable on all income
Medical, Maternity, Invalidity, Death, Solidarity 0.75% 13.1%
Child Benefits None 5.4%
Old Age minimum 0.10% 1.6%
General social tax 7.50% none
Social security debt reimbursal levy 0.50% none
Tax payable on income up to earnings ceiling
Old Age minimum 6.65% 8.3%
Old Age branch supplementary 3.8% 5.7%
Tax payable on income up to four-times earnings ceiling
Unemployment 2.40% 4.00%
Old Age branch supplementary 8.6% 13.9%
Tax payable on income between four and eight-times earnings ceiling
Old Age branch supplementary 0.13% 0.22%
Germany[edit]
See also: Taxation in Germany
German employers are obliged to withhold wage tax on a monthly basis. The wage tax withheld will be qualified as prepayment of the income tax of the employee in case the taxpayer files an annual income tax return. The actual tax rate depends on the personal income of the employee and the tax class the employee (and his/her partner) has chosen.
In addition to income tax withheld employees and employers in Germany must pay contributions to finance social security benefits. The social security system consist of four insurances, for which the contribution will be (nearly) equally shared between employer and employee (old age insurance, unemployment insurance, health insurance and nursing care insurance). Contributions are payable only on wages up to the social security threshold:
annual amounts 2015
Threshold West Germany
Threshold East Germany
Health- and Nursing Care insurance 49,500 Euro 49,500 Euro
Old Age- and Unemployment insurance 72,600 Euro 62,400 Euro
In addition there are some insurance which are covered by the employer only (accident insurance, insolvency insurance, contribution to the maternity allocation, contribution for sick pay allocation for small companies). The following table shows employee and employer contributions by category for the year 2015.
category
Employee
Employer
Notes
Old Age (pension) 9.35% 9.35%
Health 7.3% 7.3% In addition, the health insurance will impose a surcharge up to 0.9%, to be paid by the employee only.
Unemployment 1.5% 1.5%
Nursing Care 1.175% 1.175% 1.425% childless employees over 23 years old
1.675% in Saxony
Accident 1.6% depends on risk covered
Sick Pay (AOK, 80%) 0.7% Depends on coverage and health insurance.
Maternity (AOK) 0.24%
Insolvency (AOK) 0.15% Payment of outstanding salary in case of bankruptcy
see also www.lohnsteuer.de

Greece[edit]
See also: Taxation in Greece
An employer is obligated to deduct tax at source from an employee and to make additional contributions to social security as in many other EU member states. The employer's contribution amounts to 28.06% of the salary. The employee's contribution is 16%.
Income tax is extra.
Hong Kong[edit]
Main article: Salaries tax
In Hong Kong, salaries tax is capped at 15%.[11] Depending on income, employers fall into different tax brackets.[11]
Sweden[edit]
See also: Taxation in Sweden
In 2010, the Swedish social security contribution paid by the employer is 31.42 percent, calculated on top of the employee's salary. The percentage is lower for young and old employees.[12] The other type of Swedish payroll tax is the income tax withheld (PAYE), which consists of municipal, county, and, for higher income brackets, state tax. In most municipalities, the income tax comes to approximately 30 percent, with the two higher income brackets paying a total of 50 or 55 percent respectively. The combination of the two types is a total tax effect of 47 to 66 percent.
United Kingdom[edit]
Main article: Taxation in the United Kingdom § Personal_taxes
In the United Kingdom, pay as you earn (PAYE) income tax and Employees' National Insurance contributions are examples of the first kind of payroll tax, while Employers' National Insurance contributions are an example of the second kind of payroll tax.
There are currently (July 2011) four PAYE income tax bands: 23% plus 11% national insurance on annual income up to £35,000 40% from £35,001 to £150,000 and 45% on all income above £150,000. The fourth rate of 10% is paid on income from savings up to £2,560 per annum only and is not paid if non-savings income is in excess of this limit.[13][14] In addition employees pay a national insurance contribution of 12%, while employers pay 13.8%. The contributions are not paid on the total salary but only above a lower threshold.[14]
United States[edit]
Payroll taxes were among the most regressive in 2010.
See also: Taxation in the United States and Federal Insurance Contributions Act tax
In the United States, payroll taxes are assessed by the federal government, some of the fifty states (Alaska, Florida, Nevada, South Dakota, Texas, Washington, and Wyoming do not have state income tax; New Hampshire and Tennessee only tax income from interest and dividends), the District of Columbia, and numerous cities. These taxes are imposed on employers and employees and on various compensation bases and are collected and paid to the taxing jurisdiction by the employers. Most jurisdictions imposing payroll taxes require reporting quarterly and annually in most cases, and electronic reporting is generally required for all but small employers.[15] The Federal Insurance Contributions Act tax is a federal payroll tax imposed on both employees and employers to fund Social Security and Medicare[16] —federal programs that provide benefits for retirees, the disabled, and children of deceased workers.
Income tax withholding[edit]
Main article: Tax withholding in the United States
Federal, state, and local withholding taxes are required in those jurisdictions imposing an income tax. Employers having contact with the jurisdiction must withhold the tax from wages paid to their employees in those jurisdictions.[17] Computation of the amount of tax to withhold is performed by the employer based on representations by the employee regarding his/her tax status on IRS Form W-4.[18]
Amounts of income tax so withheld must be paid to the taxing jurisdiction, and are available as refundable tax credits to the employees. Income taxes withheld from payroll are not final taxes, merely prepayments. Employees must still file income tax returns and self assess tax, claiming amounts withheld as payments.[19]
Social Security and Medicare taxes[edit]
Main article: Federal Insurance Contributions Act tax
Federal social insurance taxes are imposed on employers[20] and employees,[21] ordinarily consisting of a tax of 12.4% of wages up to an annual wage maximum ($118,500 in wages, for a maximum contribution of $14,694 in 2016) for Social Security and a tax of 2.9% (half imposed on employer and half withheld from the employee's pay) of all wages for Medicare.[22] The Social Security tax is divided into 6.2% that is visible to employees (the "employee contribution") and 6.2% that is visible only to employers (the "employers contribution"). For the years 2011 and 2012, the employee's contribution had been temporarily reduced to 4.2%, while the employer's portion remained at 6.2%,[23] but Congress allowed the rate to return to 6.2% for the individual in 2013.[24] To the extent an employee's portion of the 6.2% tax exceeded the maximum by reason of multiple employers, the employee is entitled to a refundable tax credit upon filing an income tax return for the year.[25]
Unemployment taxes[edit]
Main article: Federal Unemployment Tax Act
Employers are subject to unemployment taxes by the federal[26] and all state governments. The tax is a percentage of taxable wages[27] with a cap. The tax rate and cap vary by jurisdiction and by employer's industry and experience rating. For 2009, the typical maximum tax per employee was under $1,000.[28] Some states also impose unemployment, disability insurance, or similar taxes on employees.[29]
Reporting and payment[edit]
Employers must report payroll taxes to the appropriate taxing jurisdiction in the manner each jurisdiction provides. Quarterly reporting of aggregate income tax withholding and Social Security taxes is required in most jurisdictions.[30] Employers must file reports of aggregate unemployment tax quarterly and annually with each applicable state, and annually at the Federal level.[31]
Each employer is required to provide each employee an annual report on IRS Form W-2[32] of wages paid and Federal, state and local taxes withheld. A copy must be sent to the IRS, and some state governments also require a copy. These are due by January 31 and February 28 (March 31 if filed electronically), respectively, following the calendar year in which wages are paid. The Form W-2 constitutes proof of payment of tax for the employee.[33]
Employers are required to pay payroll taxes to the taxing jurisdiction under varying rules, in many cases within one banking day. Payment of Federal and many state payroll taxes is required to be made by electronic funds transfer if certain dollar thresholds are met, or by deposit with a bank for the benefit of the taxing jurisdiction.[34]
Penalties[edit]
Failure to timely and properly pay federal payroll taxes results in an automatic penalty of 2% to 10%.[35] Similar state and local penalties apply. Failure to properly file monthly or quarterly returns may result in additional penalties. Failure to file Forms W-2 results in an automatic penalty of up to $50 per form not timely filed.[36] State and local penalties vary by jurisdiction.
A particularly severe penalty applies where federal income tax withholding and Social Security taxes are not paid to the IRS. The penalty of up to 100% of the amount not paid can be assessed against the employer entity as well as any person (such as a corporate officer) having control or custody of the funds from which payment should have been made.[37]
See also[edit]
List of countries by tax rates
References[edit]
^ Jump up to: a b c "The Knowledge Tax". University of Chicago Law Review. 82: 1981. 2015.
Jump up ^ Historical Effective Federal Tax Rates: 1979 to 2004. Congressional Budget Office. December 2006. p. 3.
Jump up ^ "CBO’s analysis of effective tax rates assumes that households bear the burden of the taxes that they pay directly, such as individual income taxes and employees’ share of payroll taxes. CBO assumes—as do most economists—that employers’ share of payroll taxes is passed on to employees in the form of lower wages than would otherwise be paid. Therefore, the amount of those taxes is included in employees’ income, and the taxes are counted as part of employees’ tax burden." http://www.cbo.gov/sites/default/files/EffectiveTaxRates2006.pdf Page 3
Jump up ^ https://web.archive.org/web/20100713154141/http://www.americanbenefitscouncil.org/documents/bush_taxbenefits_1pager.pdf
Jump up ^ Bermuda Government Budget Statement 2009
Jump up ^ Bermuda Government Payroll Tax Guide
Jump up ^ Government of the Northwest Territories Finance Department Payroll Tax Information Page
Jump up ^ Ontario Health Premium Rate Chart
Jump up ^ {fr} http://www.urssaf.fr/employeurs/baremes/baremes/taux_des_cotisations_du_regime_general_01.html
Jump up ^ http://www.eale.nl/Conference2008/Programme/PapersB/add73074_5LFbCf6RFA.pdf
^ Jump up to: a b "Tax Computation of Salaries Tax and Personal Assessment". Hong Kong Government. June 2010. Retrieved 22 November 2010.
Jump up ^ Ekonomifakta: Sociala avgifter, läst 12 februari 2010
Jump up ^ http://www.hmrc.gov.uk/rates/it.htm
^ Jump up to: a b http://www.hmrc.gov.uk/rates/nic.htm
Jump up ^ A tutuorial is available online from the Internal Revenue Service (IRS) explaining various aspects of employer compliance, see Video Tutorial.
Jump up ^ O'Sullivan, Arthur; Sheffrin, Steven M. (2003). Economics: Principles in Action. Upper Saddle River, New Jersey 07458: Pearson Prentice Hall. p. 367. ISBN 0-13-063085-3.
Jump up ^ The determination of whether a person performing services is an employee subject to payroll tax or an independent contractor who self assesses tax is based on 20 factors. See IRS Publication 15 and the tutorial referenced above. For Federal requirements, see 26 USC 3401-3405.
Jump up ^ IRS Form W-4
Jump up ^ 26 USC 31.
Jump up ^ 26 USC 3111
Jump up ^ 26 USC 3101.
Jump up ^ Note that an equivalent Self Employment Tax is imposed on self-employed persons, including independent contractors, under 26 USC 1401. Wages and self employment income subject to these taxes are defined at 26 USC 3121 and 26 USC 1402 respectively.
Jump up ^ IRS.gov
Jump up ^ [1]
Jump up ^ 26 USC 31(b) and 26 USC 6413(c).
Jump up ^ 26 USC 3301.
Jump up ^ As defined in 26 USC 3306(b).
Jump up ^ State tax rates and caps vary. For example, Texas imposes up to 8.6% tax on the first $9,000 of wages ($774), while New Jersey imposes 3.2% tax on the first $28,900 for wages ($924). Federal tax of 6.2% less a credit for state taxes limited to 5.4% applies to the first $7,000 of wages (net $56).
Jump up ^ See, e.g., New Jersey.
Jump up ^ See, e.g., IRS Form 941. Electronic filing may be required.
Jump up ^ See, e.g., IRS Form 940.
Jump up ^ IRS Form W-2
Jump up ^ See IRS Form W-2 Instructions. Note that some states and cities obtain their W-2 information from the IRS and from taxpayers directly.
Jump up ^ See 26 USC 6302 and IRS Publication 15 for Federal requirements. EFT is required for Federal payments if aggregate Federal tax payments, including corporate income tax and payroll taxes, exceeded $200,000 in the preceding year. See, e.g., NJ Income Tax - Reporting and Remitting, New Jersey requirements for weekly EFT payment where prior year payroll taxes exceeded $10,000.
Jump up ^ 26 USC 6656.
Jump up ^ 26 USC 6721.
Jump up ^ 26 USC 6672.
External links[edit]
Payroll tax in China
Payroll tax (Chinese Tax Office)
US Payroll Tax Tables
US Payroll Tax Tables by ZIP Code
IRS publication 15 - detailed information on federal payroll tax in the U.S.
Trust Fund Recovery Penalty irs.gov
Retrieved from "https://en.wikipedia.org/w/index.php?title=Payroll_tax&oldid=804799940"
Categories:
Wages and salaries
Withholding taxes
Taxation-related lists
Payroll
Hidden categories:
Articles containing Croatian-language text
Navigation menu
Personal tools
Not logged in
Talk
Contributions
Create account
Log in
Namespaces
Article
Talk
Variants
Views
Read
Edit
View history
More
Search
Navigation
Main page
Contents
Featured content
Current events
Random article
Donate to Wikipedia
Wikipedia store
Interaction
Help
About Wikipedia
Community portal
Recent changes
Contact page
Tools
What links here
Related changes
Upload file
Special pages
Permanent link
Page information
Wikidata item
Cite this page
Print/export
Create a book
Download as PDF
Printable version
Languages
Dansk
Deutsch
Français
Hrvatski
Nederlands
Norsk
ភាសាខ្មែរ
Русский
Srpskohrvatski / српскохрватски
Svenska
Edit links
This page was last edited on 11 October 2017, at 07:02.
Text is available under the Creative Commons Attribution-ShareAlike License; additional terms may apply. By using this site, you agree to the Terms of Use and Privacy Policy. Wikipedia® is a registered trademark of the Wikimedia Foundation, Inc., a non-profit organization.
Privacy policy
About Wikipedia
Disclaimers
Contact Wikipedia
Developers
Cookie statement
Mobile view
Enable previews

values: mw-page-base noprint

values: mw-head-base noprint

values: firstHeading firstHeading en

values: siteSub noprint

values: jump-to-nav mw-jump

value: img

attrs: alt src width height srcset data-file-width data-file-height

values: 10 Percent Legacy and Succession Duty Impressed Duty Stamp.jpg

attrs: href class

values: padding:0.3em 0.4em 0.3em;font-weight:bold;border-top: 1px solid #aaa; border-bottom: 1px solid #aaa;

attrs: class id href

values: NavToggle NavToggle1 #

attrs: class style

values:
/wiki/Tax,_tariff_and_trade
mw-redirect
Tax, tariff and trade

values: font-size: 105%; padding: 0.2em 0px 0.4em; text-align: center; display: none;

values:
/wiki/Theory_of_taxation
mw-redirect
Theory of taxation

values:
/wiki/Tax_collection
mw-redirect
Tax collection

values:
/wiki/Tax_preparation
mw-redirect
Tax preparation

values:
/wiki/Tax_farming
mw-redirect
Tax farming

values:
/wiki/Value_added_tax
mw-redirect
Value added tax

values: European Union financial transaction tax

values: Rule against foreign revenue enforcement

values:
/wiki/Free_trade_zone
mw-redirect
Free trade zone

values: List of countries by tax revenue as percentage of GDP

values:
/wiki/Taxation_in_Singapore
mw-redirect
Taxation in Singapore

values: float:right;clear:right;width:22.0em;margin:0 0 1.0em 1.0em;background:#f9f9f9;border:1px solid #aaa;padding:0.2em;border-spacing:0.4em 0;text-align:center;line-height:1.4em;font-size:88%

values:
/wiki/Pay-as-you-go_tax
mw-redirect
Pay-as-you-go tax

values: Edit section: National payroll tax systems

values:
/wiki/Ontario_government
mw-redirect
Ontario government

values:
/wiki/People%27s_Republic_of_China
mw-redirect
People's Republic of China

values:
center
headerSort
0
columnheader button
Sort ascending

values:
wikitable sortable jquery-tablesorter
text-align:right;
100%

values:
nofollow
external text
http://www.lohnsteuer.de

values:
/wiki/Pay_as_you_earn
mw-redirect
Pay as you earn

attrs: alt src width height class srcset data-file-width data-file-height

values:
/wiki/File:Payroll_tax_history.jpg
image
Payroll tax rates history

values:
/wiki/Tax_credits
mw-redirect
Tax credits

values: Edit section: Social Security and Medicare taxes

values:
/wiki/Social_Security_tax
mw-redirect
Social Security tax

values:
nofollow
external text
http://www.cbo.gov/publication/42871

values:
nofollow
external free
http://www.hmrc.gov.uk/rates/it.htm

values:
nofollow
external free
http://www.hmrc.gov.uk/rates/nic.htm

values:
nofollow
http://www.tax.gov/virtualworkshop/
external text

values:
nofollow
external text
https://www.irs.gov/pub/irs-pdf/fw4.pdf

values:
nofollow
external text
https://www.irs.gov/pub/irs-pdf/p15.pdf

values:
nofollow
external text
https://www.irs.gov/uac/about-form-941

values:
nofollow
external text
https://www.irs.gov/pub/irs-pdf/fw2.pdf

values: -moz-column-width: 30em; -webkit-column-width: 30em; column-width: 30em; list-style-type: decimal;

values: Category:Articles containing Croatian-language text

values: Discussion about edits from this IP address [ctrl-alt-n]

values: A list of edits made from this IP address [ctrl-alt-y]

values: You are encouraged to create an account and log in; however, it is not mandatory

values: You're encouraged to log in; however, it's not mandatory. [ctrl-alt-o]

values:
/wiki/Payroll_tax
View the content page [ctrl-alt-c]
c

values: Discussion about the content page [ctrl-alt-t]

values: p-namespaces navigation vectorTabs p-namespaces-label

values:
p-variants
navigation
vectorMenu emptyPortlet
p-variants-label

values: Past revisions of this page [ctrl-alt-h]

values: p-views navigation vectorTabs p-views-label

values:
p-cactions
navigation
vectorMenu emptyPortlet
p-cactions-label

values:
mw-wiki-logo
/wiki/Main_Page
Visit the main page

values:
/wiki/Main_Page
Visit the main page [ctrl-alt-z]
z

values: Featured content – the best of Wikipedia

values: Find background information on current events

values:
/wiki/Special:Random
Load a random article [ctrl-alt-x]
x

values: portal navigation p-navigation p-navigation-label

values:
uls-settings-trigger
Language settings
0
button
true

values: Taxes sur les traitements et salaires – French

values:
https://hr.wikipedia.org/wiki/Doprinos
Doprinos – Croatian
hr
hr
interlanguage-link-target

values: ពន្ធលើប្រាក់បៀវត្ស – Khmer

values: Налог на заработную плату – Russian

values:
https://sh.wikipedia.org/wiki/Doprinos
Doprinos – Serbo-Croatian
sh
sh
interlanguage-link-target

values: /static/images/wikimedia-button-1.5x.png 1.5x, /static/images/wikimedia-button-2x.png 2x

values: /static/images/poweredby_mediawiki_132x47.png 1.5x, /static/images/poweredby_mediawiki_176x62.png 2x

values:
suggestions
display: none; font-size: 13px;

values: mediawiki ltr sitedir-ltr mw-hide-empty-elt ns-0 ns-subject page-Payroll_tax rootpage-Payroll_tax skin-vector action-view


text:
Deadweight loss
From Wikipedia, the free encyclopedia
Jump to: navigation, search
Deadweight loss created by a binding price ceiling. The producer surplus always decreases, but the consumer surplus may or may not increase; however, the decrease in producer surplus must be greater than the increase, if any, in consumer surplus.
A deadweight loss, also known as excess burden or allocative inefficiency, is a loss of economic efficiency that can occur when equilibrium for a good or a service is not achieved. That can be caused by monopoly pricing in the case of artificial scarcity, an externality, a tax or subsidy, or a binding price ceiling or price floor such as a minimum wage.
Contents
[hide]
1 Examples
2 Harberger's triangle
3 Hicks vs. Marshall
4 See also
5 References
6 Further reading
7 External links
Examples[edit]
An example is a market for nails where the cost of each nail is $0.10 and the demand decreases linearly, from a high demand for free nails to zero demand for nails at $1.10. If the market has perfect competition, producers would have to charge a price of $0.10, and every customer whose marginal benefit exceeds $0.10 cents would have a nail. However, if there is one producer with a monopoly on the product, it will charge whatever price will yield the greatest profit. The producer would then charge $0.60 cents and thus exclude every customer who had less than $0.60 of marginal benefit. The deadweight loss would then be the economic benefit foregone by such customers because of monopoly pricing.
Conversely, deadweight loss can come from consumers if they buy a product even if it costs more than it benefits them. To describe this, if the same nail market had the government giving a $0.03 cent subsidy to every nail produced, the subsidy would push the market price of each nail down to $0.07. Some consumers would then buy nails even though the benefit to them is less than the real cost of $0.10. That unneeded expense would then create a deadweight loss, with resources not being used efficiently.
The deadweight loss is the area of the triangle formed by the grey tax income box (to the right of it), the original supply curve, and the demand curve. It is sometimes called Harberger's triangle.
If the price of a glass of wine is $3.00 and the price of a glass of beer is $3.00, a consumer might prefer to drink wine. If the government decides to levy a wine tax of $3.00 per glass, the consumer might prefer to drink beer. The excess burden of taxation is the loss of utility to the consumer for drinking beer instead of wine since everything else remains unchanged.
Harberger's triangle[edit]
Harberger's triangle, generally attributed to Arnold Harberger, refers to the deadweight loss (as measured on a supply and demand graph) associated with government intervention in a perfect market. That can happen through price floors, caps, taxes, tariffs, or quotas. It also refers to the deadweight loss created by a government's failure to intervene in a market with externalities.[1] In the case of a government tax, the amount of the tax drives a wedge between what consumers pay and what producers receive, and the filled-in wedge shape is equivalent to the deadweight loss from the tax.[2]
The area represented by the triangle comes from the fact that the intersection of the supply and the demand curves are cut short so the consumer surplus and the producer surplus are also cut short. The loss of such surplus that is not recouped, is the deadweight loss.
Some economists like James Tobin have argued that the triangles do not have a huge impact on the economy, but others like Martin Feldstein maintain that they can seriously affect long-term economic trends by pivoting the trend downwards and cause a magnification of losses in the long run.
Hicks vs. Marshall[edit]
An important distinction should be made between Hicksian (per John Hicks) and Marshallian (per Alfred Marshall) deadweight loss. After the consumer surplus is considered, it can be shown that the Marshallian deadweight loss is zero if demand is perfectly elastic or supply is perfectly inelastic. However, Hicks analyzed the situation through indifference curves and noted that when the Marshallian demand curve is perfectly inelastic, the policy or economic situation that caused a distortion in relative prices has a substitution effect, i.e. is a deadweight loss.
In modern economic literature, the most common measure of a taxpayer’s loss from a distortionary tax, such as a tax on bicycles, is the equivalent variation, the maximum amount that a taxpayer would be willing to forgo in a lump sum to avoid the distortionary tax. The deadweight loss can then be interpreted as the difference between the equivalent variation and the revenue raised by the tax. The difference is attributable to the behavioural changes induced by a distortionary tax that are measured by a substitution effect. However, that is not the only interpretation, and Lind and Granqvist (2010) point out that Pigou did not use a lump sum tax as the point of reference to discuss deadweight loss (excess burden).
A comparable measure of loss is the compensating variation, which depends on Hicksian demand instead of Marshallian demand. In the context of a distortionary tax, the compensating variation is the minimum lump sum transfer that makes an individual indifferent between the lump sum transfer with tax and no lump sum transfer with no tax, the original situation. The deadweight loss can then be interpreted as the minimum lump sum.
See also[edit]
Tax choice
References[edit]
Jump up ^ "Negative Externality". Retrieved February 11, 2012.
Jump up ^ Gruber, Jonathan (2013). Public Finance and Public Policy. New York: Worth Publishers. ISBN 978-1-4292-7845-4.
Further reading[edit]
Case, Karl E. & Fair, Ray C. (1999). Principles of Economics (5th ed.). Prentice-Hall. ISBN 0-13-961905-4.
Hines, James R., Jr. (1999), "Three sides of Harberger Triangles" (PDF), Journal of Economic Perspectives, 13 (2): 167–188, doi:10.1257/jep.13.2.167 .
Lind, H. & R. Granqvist (2010) A Note on the Concept of Excess Burden. Economic Analysis and Policy 40:63-73.
External links[edit]
Worthwhile Canadian Initiative "Too much stuff: the deadweight loss from overconsumption"
[hide]
v
t
e
Microeconomics
Major topics
Aggregation
Bilateral monopoly
Budget
Consumer
Convexity and non-convexity
Cost
Cost–benefit analysis
Deadweight loss
Distribution
Duopoly
Economies of scale
Economies of scope
Elasticity
Equilibria
Exchange
Expected utility
Externality
Firms
General equilibrium
Household
Income–consumption curve
Information
Indifference curve
Intertemporal choice
Marginal cost
Market failure
Market structure
Monopoly
Monopsony
Oligopoly
Preferences
Production
Profit
Public goods
Returns to scale
Risk aversion
Scarcity
Shortage
Social choice
Sunk costs
Supply & demand
Surplus
Uncertainty
Utility
Welfare
Subfields
Behavioral
Business
Computational
Statistical decision theory
Econometrics
Experimental
Game theory
Industrial organization
Labor
Managerial
Mathematical economics
Microfoundations of macroeconomics
Operations research
Optimization
Retrieved from "https://en.wikipedia.org/w/index.php?title=Deadweight_loss&oldid=801879200"
Categories:
Imperfect competition
Price controls
Scarcity
Welfare economics
Navigation menu
Personal tools
Not logged in
Talk
Contributions
Create account
Log in
Namespaces
Article
Talk
Variants
Views
Read
Edit
View history
More
Search
Navigation
Main page
Contents
Featured content
Current events
Random article
Donate to Wikipedia
Wikipedia store
Interaction
Help
About Wikipedia
Community portal
Recent changes
Contact page
Tools
What links here
Related changes
Upload file
Special pages
Permanent link
Page information
Wikidata item
Cite this page
Print/export
Create a book
Download as PDF
Printable version
Languages
العربية
Català
Čeština
Deutsch
Español
فارسی
Français
한국어
Hrvatski
Íslenska
Italiano
Македонски
Nederlands
Norsk
Polski
Português
Suomi
Svenska
Tiếng Việt
中文
Edit links
This page was last edited on 22 September 2017, at 14:03.
Text is available under the Creative Commons Attribution-ShareAlike License; additional terms may apply. By using this site, you agree to the Terms of Use and Privacy Policy. Wikipedia® is a registered trademark of the Wikimedia Foundation, Inc., a non-profit organization.
Privacy policy
About Wikipedia
Disclaimers
Contact Wikipedia
Developers
Cookie statement
Mobile view

values: mw-page-base noprint

values: mw-head-base noprint

attrs: id class style

values: firstHeading firstHeading en

values: siteSub noprint

values: jump-to-nav mw-jump

attrs: href class title

values:
/wiki/Producer_surplus
mw-redirect
Producer surplus

values:
/wiki/Consumer_surplus
mw-redirect
Consumer surplus

value: b

values:
/wiki/Good_(economics)
mw-redirect
Good (economics)

values:
/wiki/Indifference_curves
mw-redirect
Indifference curves

values:
reflist mw-references-wrap
list-style-type: decimal;

values:
nofollow
external text
http://www.nber.org/papers/w6852.pdf

values:
nofollow
external text
//doi.org/10.1257%2Fjep.13.2.167

values:
/wiki/Economic_profit
mw-redirect
Economic profit

values:
/wiki/Risk_aversion_(Economics)
mw-redirect
Risk aversion (Economics)

values:
/wiki/Economic_shortage
mw-redirect
Economic shortage

values:
/wiki/Statistical_decision_theory
mw-redirect
Statistical decision theory

values:
/wiki/Labor_economics
mw-redirect
Labor economics

values: nowraplinks hlist collapsible autocollapse navbox-inner

values: navigation navbox Microeconomics padding:3px

values:
catlinks mw-normal-catlinks
catlinks mw-normal-catlinks
interface

values: Discussion about edits from this IP address [ctrl-alt-n]

values: A list of edits made from this IP address [ctrl-alt-y]

values: You are encouraged to create an account and log in; however, it is not mandatory

values: You're encouraged to log in; however, it's not mandatory. [ctrl-alt-o]

values:
/wiki/Deadweight_loss
View the content page [ctrl-alt-c]
c

values: Discussion about the content page [ctrl-alt-t]

values: p-namespaces navigation vectorTabs p-namespaces-label

values:
p-variants
navigation
vectorMenu emptyPortlet
p-variants-label

values: Past revisions of this page [ctrl-alt-h]

values: Guidance on how to use and edit Wikipedia

values: About the project, what you can do, where to find things

values: A list of recent changes in the wiki [ctrl-alt-r]

values: portal navigation p-interaction p-interaction-label

values: List of all English Wikipedia pages containing links to this page [ctrl-alt-j]

values: Recent changes in pages linked from this page [ctrl-alt-k]

values:
/wiki/Wikipedia:File_Upload_Wizard
Upload files [ctrl-alt-u]
u

values: A list of all special pages [ctrl-alt-q]

values: Permanent link to this revision of the page

values: Link to connected data repository item [ctrl-alt-g]

values: Printable version of this page [ctrl-alt-p]

values: خسارة فادحة – Arabic

values: Pèrdua irrecuperable d'eficiència – Catalan

values: Pérdida irrecuperable de eficiencia – Spanish

values: رفاه ازدست‌رفته – Persian

values: Мртов товар (економија) – Macedonian

values: mediawiki ltr sitedir-ltr mw-hide-empty-elt ns-0 ns-subject page-Deadweight_loss rootpage-Deadweight_loss skin-vector action-view