Personal income
Personal income tax revenues are dependent on wages and employment (WtLt), and the rationale of social related expenditure is affecting the personal income taxation, the tax expenditure has long been used as a tool for promoting a social and economic objectives. And, in the US the social tax expenditures are affecting personal income taxation and represent the main part of total tax expenditure in relation to GDP. There are four preferential tax treatment are affecting the personal-income tax, related to housing, pension, education and health expenditure. According to the OECD 2019, there is a rise in tax wedge rates driven by the higher income, and it was the major factor in 20 of the countries of OECD showing an overall increase. And, the largest rise in personal income taxes as a percentage of labour costs was in France (1.36 percentage points), largely due to an increase of 1.7% points in surtax rate; however, the increase in personal-income tax was mostly offset by reduced social security contributions.