Increased Income Tax rates.- is it any good for the real Economy?
|How far can the US and the EU governments go to increase taxes and social security charges on wages?. With the purpose of balance their budgets, we believe that higher taxes on employment are suffocating the real economy and the prospects for employment generation.|
It is shocking to see how according to the last OECD report on wages, the average tax and social security burden on employment incomes rose in most countries in 2010, reversing a trend toward declining tax burdens seen in previous years. The Netherlands, Spain and Iceland were among the countries experiencing significant increases. Access the graphs and data in the OECD page.
While banks continue showing good earnings consistently and the Governments in the EU and the USA continue operating at a deficit, increasing their debt position and their dependency on banks, we advocate for a redefinition of the budgetary policies to avoid suffocating the real economy with higher tax.