Tax Burdens Get Heavier Worldwide
March 27, 2013 International Tax Cooperation
PARIS – A new study has confirmed that taxpayers around the world are now seeing their wallets shrink as their tax obligations continue to rise.
Over the course of 2012 the average tax burden faced by individual taxpayers in OECD countries rose by 0.1 percent, from 35.5 percent to 35.6 percent, according to the preliminary release of the results of new research which was published by the OECD on March 26th.
The OECD defines tax burden as “…the total taxes paid by employees and employers, minus family benefits received, divided by the total labour costs of the employer.“
Amongst all 34 of the OECD member nations only 14 countries saw a decrease in tax rates, and only one country left its taxes unchanged, with all of the remaining countries either raising the rates of income taxes or hiking social security contributions.
The study found that on average the social group which could be described as “childless single workers” faced the highest tax responsibilities, with effective tax obligations of up to 56 percent in Belgium, 50.2 percent in France, and 49.7 in Germany.
A full report and analysis on the result of the research is scheduled to be released by the OECD later this year.
Photo by Philip Taylor PT