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Article: OECD Tax Report Seriously Misinterpreted
21 May 2010, Roger Kerr, Otago Daily Times
Each year at about this time the OECD puts out a report on tax covering its member countries.
Each year some media and politicians can be counted on to misinterpret it.
The OECD report, Taxing Wages, estimates the so-called ‘tax wedge’ between total labour costs to the employer and the corresponding takehome pay to the worker at average earnings levels (and at certain fractions of the average wage). Social security tax payable by employers and employees, which is commonly used to fund welfare, is included.
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