Eli5: Why do we tax public sector wages?

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I’m in the UK but I’m sure the logic around much of the world is the same. It seems like an incredibly bureaucratic waste of money to tax public sector wages, rather than just pay the workers upfront what they would get post-tax. I might be missing something though, so hope someone on here might enlighten me if I am!

In: Economics

7 Answers

Anonymous 0 Comments

Aside from the practical reasons, there’s also the fact that the government often has enough people grumbling about its various doings without also having jobs that are “tax-free” even if that just means the people are paid an equivalent wage. It puts a bad taste in the taxpayers mouths to see an entire building full of workers who don’t have to pay taxes.

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