Tag Archives: OECD

The End of the G-20

From Foreign Affairs,  September 14, 2016

Has the Group Outlived Its Purpose?

By REBECCA LIAO who is the Director of Business Development at Globality, Inc. She is also a writer and China analyst.

Over Labor Day weekend, the leaders of the G-20 countries gathered in Hangzhou, China, for their annual summit. Their goal this year: save the good name of globalization, which has recently taken a beating. In the wake of Brexit, the U.S. Republican presidential candidacy of Donald Trump, the rise of the European far right, and China’s own anti-Westernism, the G-20 leaders were supposed to renew their commitment to collective economic growth and open cross-border trade and investment. —————————-

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—————–One area in which international cooperation is crucial, however, is in tax regulations that prevent tax evasion. High-net-worth individuals and corporations are able to move their income to jurisdictions with lower taxes, most of the time through legal means. This ability to hide income stymies tax-and-transfer programs, not to mention that it has meant a significant hit to government revenues in advanced and developing countries alike. In response, the G-20 and OECD have partnered to devise and implement a framework on tax reform that individual countries may implement at a customized pace. The success of this initiative remains to be seen since it internationalizes a tool that is at the heart of a country’s economic sovereignty.

Asking countries to incrementally but broadly give up that sovereignty is not a worthwhile endeavor for the G-20, or for any multilateral organization. It would be better served by focusing on problems that are recognized to be global in nature and by encouraging countries to cooperate on other economic issues without standardizing growth initiatives or imposing growth targets. In the end, after the summits are over, the job of saving globalization is still waiting for the leaders when they arrive home.
To read the full article published in Foreign Affaires click on the link

Tax Burden on Salaries-OECD Countries

Periklis Dr. Periklis Gogas is an Associate Professor of Economics, International Economics Department, Democritus University of Thrace, Greece Matthaiou

Ms. Maria Matthaiou is a PhD Candidate in Economics, Democritus University of Thrace, Greece

For a typical family, the net salary is usually the main source of its income. Therefore, it determines their ability to consume or save. In the following table we present the net salary in 27 OECD countries. Net salary is the take-home pay that is left after we deduct the income tax and employee’s social security benefits for retirement and health insurance from the gross salary payed by the employer. More specifically: Continue reading Tax Burden on Salaries-OECD Countries