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

Because their pay isn’t the only things invovled in their taxes. You have deductible, they could have other forms of income, investment, are they married, have kids, etc. All of this is used to determine how much they owe to the governement as taxes. Not all this information is known by the employer of the person, even if the employer is the governement. So it’s better to threat them like anybody else.

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