Over the past ten years, the tax burden on wages has eased in most of the world’s industrial countries, according to the Organization for Economic Co-operation and Development (OECD). Those changes have benefited the lower and middle class, for the most part.
Only, there some exceptions. The OECD pointed fingers at a small group of countries where the changes have favored high income groups. Among them, Canada and the US. While Canada was lumped together with Australia, Germany, Iceland, Ireland and Luxembourg, the US was singled out.
The report shows the tax burden on wages as an average of the member countries dropped 0.1% between 2000 and 2006. In Canada, the most significant reduction (2.3%) was for workers making 150-200% of the average wage; in the US, similarly the most significant reduction (1.6%) was for those in the highest income bracket. In the US, that reduction is more than three times the rate for those making less than or equal to the average wage.
In contrast, the OECD reported that countries such as France, Belgium, Hungary, Italy, the Netherlands, and Portugal have implemented targeted tax cuts which have provided the most relief to employees whose wages were less than two third of the national average.
Belgium, Hungary and Germany imposed the highest tax rates overall in 2007, while Mexico, Korea and New Zealand reported the least.
I’m going to dig around and see what I can find about the collective economic health of all of these countries. Should be interesting reading, no?
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