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OECD: Tax burden highest in Germany and Belgium, lowest in Chile

Europe
11.04.2017
By our dpa-correspondent and Europe Online    auf Facebook posten  Auf Twitter posten  
Berlin (dpa) - Belgians paid the highest average tax burden for childless single workers earning the average national wage, followed by Germans, according to figures for 2016 released by the Organization for Economic Cooperation and Development (OECD) on Tuesday.

Workers in Chile, New Zealand and Mexico surrendered the lowest proportion of their wages to the state.

The so-called "tax wedge" percentage came in at 54 for Belgium, 49.4 for Germany, 48.2 for Hungary and 48.1 for France.

Chileans paid at least 7 per cent, followed by New Zealanders at 17.9 per cent and Mexicans at 20.1 per cent.

Taxes on labour income for the average worker across the OECD continued to decrease for the third consecutive year during 2016, dropping to 36 per cent of labour costs.

"The decrease in the average tax wedge seen since 2013 is partly explained by reforms in some countries to reduce taxes on labour income," it said, citing Belgium and Austria as countries that both experienced significant reductions in their tax wedges in 2016 as a result.

Only Greece saw an increase of more than one percentage point in the tax wedge. The 1.06 percentage point increase was driven by an increase in both personal income tax and social security contributions.

Established in 1961, the OECD seeks to promote policies that improve the economic and social well-being of people in its 35 member countries.

 

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