Tax Wedge
Arvamus 15 May 2010  EWR
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Andrei Tuch
Hot on the heels of the European Commission's positive recommendation on Estonia joining the Euro from next year, comes another news: Estonia has been invited to join the OECD.

I'm not clear enough on what we're supposed to do in the OECD to discuss the implications, although one interesting point I've heard is that with the Euro and the OECD invite, Estonia is very nearly out of targets. There are no more obvious landmarks of Western integration that we need to strive for. The only one left is membership of the Nordic Council, which is an issue of prestige and self-perception rather than any tangible economic benefit: we're already integrated into the Scandinavian economy pretty darn well.

Here's an interesting link, though: the tax wedge in OECD countries. It's a parameter that describes how much tax a household is paying, as a percentage of income; the rules for calculating it are designed to make it both representative, and comparable between countries.

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