MercoPress. South Atlantic News Agency

Chileans work two months for the government

Last year, Chileans paid the largest proportion of their paycheck in taxes since 1987. In fact, on average Chileans pay 17.33% of their wages, or 53,910 pesos out of a 300,000 peso income, every month.

In effect, that means that once every six months, Chileans pay their entire paycheck in taxes.

The heaviest tax burden comes from the value added tax, or IVA, which makes up 47.8% of the tax load. Next come rental taxes, at 30.8%. Various other taxes make up the balance.

"In Chile taxes are very high and there is zero efficiency in public spending" said Econsult economist Michelle Labbé. To increase the efficiency of public spending, the budget should be "trimmed of its fat," with less important programs removed, said Labbé.

Geoff Burt - The Santiago Times - News about Chile