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1 Elke Asen, A Comparison of the Tax Burden on Labor in the OECD, 2019 1 (2019)

handle is hein.taxfoundation/ctxbdn0001 and id is 1 raw text is: 3A Comparison of the Tax Burden on Labor in the OECD, 2019 FISCAL Elke Asen FACT Research Assistant No. 655 May 2019 Key Findings Average wage earners in the OECD 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) and sales tax. Before accounting for VAT and sales tax, the average tax burden a single average wage earner faced in the OECD was 36.1 percent of pretax earnings in 2018. The average OECD tax burden on labor has remained relatively stable over the past two decades. In 2018, the average tax burden from income and payroll taxes that families in OECD countries faced was 26.6 percent, which is 9.5 percentage-points lower than that of single taxpayers without children. Accounting for VAT and sales tax reveals that in 2018, the average tax burden on labor was 41.1 percent, which is 5 percentage-points 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, 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