DISINSENTIF BEKERJA KARENA PAJAK PENGHASILAN?

Abstract

The individuals determine their hours of work by weighing the benefits of consumption against those of leisure. In making their decisions, individuals are constrained by the amount of time available and by the limitation that income is to equal the sum of earned income and non-work income. The response of workers to an increase in taxation can be decomposed in two opposing effect, on income effect and substitution effect. The substitution effect is countered by an income effect that favors work if leisure is normal good. By reducing the reward of work, an income tax induces worker to work less and consume more leisure. Key-words : hours of work, leisure, income effect, substitution effect