Taxes on Wages Rise in the OECD
April 16, 2015 International Tax Cooperation
PARIS – Taxpayers around the world are losing more of their salaries in taxes, as over the last few years wages have risen faster than tax breaks.
According to information in a new report issued on April 14th by the Organization for Economic Cooperation and Development, taxes on wages rose by 1 percent between the years of 2010 and 2014.
The tax burdens on wages rose in 23 OECD countries, while it fell in only 10 countries.
The effective increase in the tax burden was not a product of an increase in tax rates, but a result of wages rising faster than increase to tax allowances and tax-free thresholds, which resulted in higher portions of incomes being used to pay taxes.
According to the results of the study the countries with the highest tax burdens on wages were Belgium, Austria, Germany, and Hungary, with rates of 55.6 percent, 49.4 percent, 49.3 percent, and 49 percent, respectively.
The countries with the lowest rates were found to be with Chile, New Zealand, Mexico, and Israel, with rates of 7 percent, 17.2 percent, 19.5 percent, and 20.5 percent.
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