OECD Adds Its Voice to US Debate on Taxes
June 27, 2012
Economically, the United States remains one of the strongest countries in the world, but there are signs its competitive edge is slipping. Despite a reputation as a global leader in technology and innovation, OECD Deputy Secretary-General Richard Boucher says the U.S. is falling behind in education.
"The United States is one of three countries out of the 34 (in the OECD) that we've studied that spends less on education of disadvantaged students than we do on other students. Usually it's the other way around," Boucher said.
It's a situation the OECD says has led to rising income disparity -- with those in the highest income brackets receiving a better education and, therefore, greater opportunities to succeed.
Another contributing factor is what the OECD calls "tax code distortions".
"There are elements of the tax code that are favoring the kind of income that the richest people make. We come at it somewhat from the inequality point of view but also from the fact that we think the government tax system ought to be a lot more neutral," Boucher said.
Perhaps unwittingly, the OECD appears to have inserted itself in the middle of a hot political debate...one exemplified by billionaire Warren Buffet, who once remarked that he paid a smaller percentage in taxes than his secretary.
"I think that people at the high end, people like myself, should be paying a lot more in taxes," Buffet said.
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