> Obviously we could essentially make income tax 0% in Sweden over night, by just moving it to payroll tax. But no one would argue Sweden was some kind of tax haven.
Denmark is an example of the opposite of this: Employer social security contributions make up 0.8% of total tax wedge, and they've rolled all of the employee contributions into the income tax, which makes Danish income tax look really high compared to most other European countries that have much higher employer contributions, and presumably contributes to the idea that the Nordic countries are particularly high tax, while Denmark overall is actually roughly average for OECD.
> I don't know what the grandparent poster was trying to say "employer pays $1k payroll tax so you make $9k"? Just shows how confusing this is (apparently)
He clearly misinterpreted you and though $8k was your gross salary, rather than gross salary + payroll tax, hence my original comment to him.
Denmark is an example of the opposite of this: Employer social security contributions make up 0.8% of total tax wedge, and they've rolled all of the employee contributions into the income tax, which makes Danish income tax look really high compared to most other European countries that have much higher employer contributions, and presumably contributes to the idea that the Nordic countries are particularly high tax, while Denmark overall is actually roughly average for OECD.
> I don't know what the grandparent poster was trying to say "employer pays $1k payroll tax so you make $9k"? Just shows how confusing this is (apparently)
He clearly misinterpreted you and though $8k was your gross salary, rather than gross salary + payroll tax, hence my original comment to him.