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1 Daniel Bunn & Alec Fornwalt, A Comparison of the Tax Burden on Labor in the OECD, 2018 1 (2018)

handle is hein.taxfoundation/comptaxb0001 and id is 1 raw text is: A Comparison of the Tax Burden on Labor in the OECD, 2018 FISCAL FACT Daniel Bunn Alec Fornwalt No. 613 Director of Global Projects PolicyAnalyst Sept. 2018 Key Findings Average wage earners in developed countries have their take-home pay lowered by three major taxes: the individual income tax, the payroll tax (both the employee and employer side), and the value-added tax (VAT). Although about half of the legal incidence of payroll taxes falls on employers, employees ultimately bear the burden through lower take-home pay. Before accounting for state and local sales taxes, the tax burden that a single average wage earner faces in the U.S. is 31.7 percent of pretax earnings, amounting to $18,198 in taxes in 2017. The tax burden from income and payroll taxes faced by average U.S. workers was the 11th lowest in the OECD, below the 35-country average of 36 percent. The tax burden from income and payroll taxes that families in OECD countries face is 9.8 percentage points lower on average than that of single, childless taxpayers. Accounting for value-added taxes reveals that the average tax burden on labor is 14 percent higher than when only income and payroll taxes are considered. The Tax Foundation is the nation's leading independent tax policy research organization. Since 1937, our research, analysis, and experts have informed smarter tax policy at the federal, state, and local levels. We are a 501(c)(3) nonprofit organization. ©2018 Tax Foundation Distributed under Creative Commons CC BY NC 4.0 Editor, Rachel Shuster Designer, Dan Carvajal Tax Foundation 1325 G Street, NW, Suite 950 Washington, DC 20005 202.464.6200 taxfoundation.org

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