Taxing Wages provides unique information on the taxes paid on wages in OECD countries. It covers personal income taxes and social security contributions paid by employees; social security contributions and payroll taxes paid by employers and cash benefits paid by in-work families. The purpose is to illustrate how these taxes and benefits are calculated in each member country and to examine how they impact on household incomes. The results also enable quantitative cross-country comparisons of labour cost levels and the overall tax and benefit position of single persons and families on different levels of earnings.
The publication shows this information for eight household types which vary by income level and household composition and the results reported include the marginal and average tax burdens for one and two earner families and the total labour costs of employers. These data are widely used in academic research and in the preparation and evaluation of social and economic policy making.
Taxing Wages 2014 includes a special feature entitled: ‘Changes in Structural Labour Income Tax Progressivity over the 2000-2012 Period in OECD Member Countries.'
Table of contents:
Executive summary 11 Overview 15 -1. Introduction 16 -2. Review of results for 2013 17 Special Feature: Changes in structural labour income tax progressivity over the 2000-12 period in OECD member countries 29 -1. Introduction 30 -2. Structural labour income tax progressivity indicators 31 -3. The average PIT rate and tax wedge progression on average across the OECD 32 -4. Overall average PIT rate and tax wedge progression and deviation across income intervals 36 -5. Average tax rate progression varies widely across OECD countries 42 -6. Changes in average tax rate progression over time vary widely across OECD countries 47 -7. Conclusion 49 -Bibliography 52 -Annex S.A. Average personal income tax rate and tax wedge progression on average across the OECD in 2007 and 2000, for 6 household types, by income intervals 53 -Annex S.B. Changes over time in the average personal income tax rate and tax wedge progression on average across the OECD 54 -Annex S.C. Overall average pit tax rate and tax wedge progression and standard deviation across 7 income intervals in 2012 for 6 family types 55 -Annex S.D. Changes in the overall average tax rate progression and changes in the standard deviation across 7 income intervals over the 2000-12 time interval for 6 family types 56 -Annex S.E. Average tax rate progression in 2012: Country charts 57 -Annex S.F. Change in average tax rate progression over the 2000-12 time interval: Country charts 58 PART I. INTERNATIONAL COMPARISONS Tax burdens, 2013 estimates 61 Graphical exposition of the 2013 estimated tax burden 87 Tax burdens, 2012 definitive results (and changes to 2013) 125 PART II. TAX BURDEN TRENDS 2000-13 Evolution of the tax burden (2000-13) 143 -1. Historical trends 143 -2. Important trends 143 -3. Tax wedge 143 -4. Average income tax rate 144 -5. Net personal average tax rate 145 -6. Progressivity 146 -7. Families 146 Income taxes, social security contributions and cash benefits 149 PART III. COUNTRY DETAILS, 2013 -Australia (2012-13 income tax year) 179 -Austria 195 -Belgium 207 -Canada 219 -Chile 233 -Czech Republic 241 -Denmark 249 -Estonia 261 -Finland 269 -France 277 -Germany 291 -Greece 303 -Hungary 317 -Iceland 325 -Ireland 335 -Israel 345 -Italy 355 -Japan 365 -Korea 379 -Luxembourg 391 -Mexico 401 -Netherlands 411 -New Zealand (2013-14 income tax year) 425 -Norway 433 -Poland 443 -Portugal 453 -Slovak Republic 465 -Slovenia 477 -Spain 487 -Sweden 497 -Switzerland 507 -Turkey 521 -United Kingdom (2013-14 income tax year) 529 -United States 537 Annex Methodology and limitations 547 -1. Methodology 547 -2. Limitations 561 -3. A note on the tax equations 563