In a new report, Tax Wages 2024, the OECD highlights that effective tax rates on wages rose in most OECD countries in 2023. The report also highlights that workers earning the average wage saw a decline in after-tax income in 21 out of the 38 OECD countries. This decline in after-tax income is driven by the lack of automatic indexation of tax credits and bands across most of the OECD. As such, in periods of high inflation workers’ tax liabilities tend to increase as they are pushed into higher tax brackets.