This table has just been published by the OECD and shows the "tax wedge" taken from employment earnings for all 34 OECD countries.
This table has just been published by the OECD and shows the “tax wedge” (the difference between before-tax and after-tax earnings) taken from employment earnings for all 34 OECD countries:
The OECD say of this:
Note then that this “wedge” includes employer’s national insurance – which most people do not appreciate is paid on their behalf.
The UK is at 32.3 per cent, well down the list.
Of course, that may also be why we have such a high deficit: we are undertaxing high earnings in particular.
But there’s no case for saying we’re overtaxed, most especially at high rates. That’s for sure.Like this article? Sign up to Left Foot Forward's weekday email for the latest progressive news and comment - and support campaigning journalism by making a donation today.