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1 Robert Bellafiore, The U.S. Tax Burden on Labor, 2019 1 (2019)

handle is hein.taxfoundation/ustaxbd0001 and id is 1 raw text is: The U.S. Tax Burden on Labor, 2019 FISCAL Robert Bellafiore FACT Policy Analyst No. 656 May 2019 Key Findings Average wage earners in the United States face two major taxes: the individual income tax and the payroll tax (levied on both the employee and the employer). Although slightly more than half of a U.S. worker's payroll tax burden is paid by his employer, the worker ultimately pays this tax through lower take-home pay. Before accounting for state and local sales taxes, the U.S. tax wedge-the tax burden that a single average wage earner faces-was 29.6 percent of pre- tax earnings in 2018, amounting to $17,596 in taxes. The U.S. tax wedge has consistently been below the OECD average, which was 36.1 percent in 2018. The U.S. tax wedge fell by 2.2 percentage points in 2018 as a result of the Tax Cuts and Jobs Act's (TCJA) individual income tax cuts. The TCJA's lowering of most individual income tax rates, along with several other changes, reduced tax bills for 80 percent of taxpayers in 2018, resulting in a higher net take- home pay, and therefore in a smaller tax wedge. 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, local, and global levels. We are a 501(c)(3) nonprofit organization. ©2019 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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