Dividends and capital gains are generally subject to lower effective tax rates than wage income at a personal level, according to a working paper from the Organisation for Economic Co-operation and Development (OECD) published on Monday 28 August.
The OECD has presented a novel analysis that compares the tax treatment of labour and capital income in OECD countries in a consistent way, using stylised effective tax rates.
In many countries, capital income is also favoured from a tax point...