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31
Aug
Recent years have seen growing interest in differences between labour and capital income taxation. New stylised effective tax rates show that governments almost always
tax the capital income individuals receive more favourably than wage income. But that is only part of the story, because governments also usually tax labour and capital income at the firm level. After accounting for firm-level taxes, capital is still taxed more favourably than labour in many OECD countries, but in others, the reverse is true.
Interest...