US Workers Are Highly Taxed If You Count Premiums

Occasionally the OECD publishes information that combines formal taxes and NTCPs together in order to allow researchers to compare “compulsory payment rates” across countries. The apparent reason these mandated premiums are incompatible with the OECD’s Taxing Wages model is that they are open-ended payments: employers and employees have to buy private insurance regardless of its cost. By counting those average premiums as NTCPs, we can compute a compulsory payment rate that is comparable to the compulsory payment rates the OECD produces for other countries.

Source: www.peoplespolicyproject.org