Very interesting the report realeased by the OECD,Taxing wages, which provides information on income tax paid by workers and social security contributions levied on employees and their employers in OECD countries.

According to the report, the average tax and social security burdens on employment incomes rose in most countries in 2010 (22 of the 34 OECD countries), reversing a trend toward declining tax burdens.

Among the countries where these tax and social security burdens experienced significant increases, Spain, the Netherlands and Iceland, while Denmark, Greece, Germany and Hungary were among those showing the biggest drops.

At a Spanish level, we have to mention thereport issued by the think tank Instituto Juan de Mariana, in which it is performed a comparition of tax burdens and social security charges in Spain and in the rest of European countries.

One of the main conclusions reached by this report is that the Spanish companies pay almost 12 percentage points more in social security charges than the average of the OECD countries.

According to the report, “if we look the Personal Income Tax for homogeneous levels of income, we find that the tax burden on labor income is not lower in Spain”.

This report also stresses the fact that the taxes on capital in Spain are in the highest levels, while the Value Added Tax rates are still low taking into account the other EU countries.