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1 Garrett Watson, The U.S. Tax Burden on Labor 1 (2020)

handle is hein.taxfoundation/tfustblb0001 and id is 1 raw text is: AO The U.S. Tax Burden on Labor F ISCAL Garrett Watson FACT Senior Policy Analyst No. 711 May2020 Key Findings * Average workers in the United States face two major taxes on wage income: 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 their 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 29.8 percent of pretax earnings in 2019, adding up to $18,368 in taxes. * The U.S. tax wedge of 29.8 percent has consistently been below the OECD average, which was 36 percent in 2019. * The U.S. tax wedge rose by 0.2 percentage points in 2019, but remains about 2 percentage points lower than prior to the Tax Cuts and Jobs Act (TCJA) that reduced most individual income tax rates. 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 global levels. We are a 501(c)(3) nonprofit organization. @2020 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