4 ms·
I think low tax wedge in Denmark is caused by relatively low cost of an employee to the employer (who pays relatively small amounts over their salary) vs in oth
by egman_ekki 10y ago
I think low tax wedge in Denmark is caused by relatively low cost of an employee to the employer (who pays relatively small amounts over their salary) vs in other Western countries.
- vidarh 10y agoYes, it's more transparent. It does also mean, though, that it feels like you're taxed more, because e.g. in the UK, most people aren't aware that their employer pays 12.8% or whatever the current rate is, in employers national insurance contributions. This does complicate cross-border comparisons in that if you're including payroll taxes when talking about the tax, you also need to add them to salaries to get comparable numbers.