LONDON, April 11 Taxes on wages rose across
industrialised countries last year, as governments sought to
reduce budget deficits blown out by efforts to tackle years of
economic weakness following the financial crash.
The Organisation for Economic Co-operation and Development
(OECD), whose members include the world's richest nations, said
the total burden of taxes on labour rose to 35.9 percent in 2013
from 35.7 percent in 2012.
The OECD said the growing "tax wedge", which includes income
taxes and the taxes employers pay on wages, was a disincentive
to employment creation.
The Paris-based body believes lifting taxes on property and
reducing tax breaks on pension saving for the better off, would
be less damaging for employment and growth.
However, data across the OECD showed little correlation
between employment and taxes on wages.
Belgium had the highest tax burden at 55.8 percent, last
year but had an unemployment rate just fractionally above the
Germany had the second highest tax burden at 49.3 percent
but the fourth lowest unemployment rate, according to data on
the OECD website.
OECD statistician Maurice Nettley said the absence of direct
correlation was probably due to the fact economies in the group
differed so much and many other factors were at play.
However, the tax burden has fallen on one group - since 2007
low paid workers with children have seen their burden drop
relative to average and higher earners, the OECD said in its
annual "Taxing Wages" survey.
(Reporting by Tom Bergin Editing by Jeremy Gaunt)