Tax Burden on Labor in Europe, 2022
To make the taxation of labor more efficient, policymakers should understand the inputs into the tax wedge, and taxpayers should understand how their tax burden funds government services.
4 min read
Featured Articles
A Comparison of the Tax Burden on Labor in the OECD, 2021
Governments often justify higher tax burdens with more extensive public services. However, the cost of these services can be more than half of an average worker’s salary.
21 min read
A Comparison of the Tax Burden on Labor in the OECD, 2020
A higher tax burden on labor often leads to lower employment rates and wages. That’s important for policymakers to remember as they look for ways to help their economies recover from coronavirus-induced shutdowns. If their goal is to encourage employment, policies that lower the tax burden on labor could prove a powerful tool.
20 min read
A Comparison of the Tax Burden on Labor in the OECD, 2018
Before accounting for state and local sales taxes, the tax burden that a single average wage earner faces in the U.S. is 31.7 percent of pretax earnings, amounting to $18,198 in taxes in 2017.
18 min read
Tax Burden on Labor in Europe, 2019
2 min read
Tax Burden on Labor in Europe, 2023
To make the taxation of labor more efficient, policymakers should understand the inputs into the tax wedge, and taxpayers should understand how their tax burden funds government services.
4 min readAll Related Articles
Gas Tax Holidays Sound Politically Tempting. Too Bad They Don’t Work.
Gas tax prices are soaring across the country, and lawmakers are naturally looking for ways to alleviate the pain at the pump. While gas tax holidays—which temporarily suspend fuel taxes to artificially lower the price of gas—are a politically welcomed intervention, taxpayers shouldn’t be so quick to celebrate.
Poland Considering a Second Harmful Digital Tax
Poland is proposing to broaden and raise its digital services tax (DST) from 1.5 percent to 3 percent. Because DSTs tax revenues, not profits, a company with a 10 percent profit margin would face a 30 percent effective tax rate on digital services provided in Poland.
6 min read
Testimony: Assessment Limits and Property Taxes in Nebraska
Assessment limits are not sound tax policy. While well-intended, with hopes of preventing owners from being “taxed out of their homes,” the tax shifts, lock-in effects, and housing supply issues created by assessment limits make housing affordability worse.
Three Global Tax Policy Ideas in Need of a Reality Check
Formulary apportionment, global tax harmonization, and broad tax increases on services all face design, implementation, and economic barriers. When designing tax systems, policymakers should focus on doing the basic things well and avoid harmful policies that could stunt growth.
7 min read
Cut the Income Tax, Not Taxes on Tips and Overtime
Though politically popular, “no tax on tips and overtime” is a short-sighted gimmick that risks derailing West Virginia’s path to prosperity.
State Taxation of Data Centers
Data centers face high tax burdens and are particularly substantial contributors to local coffers, but poor tax structure can drive these operations to other locations and deprive local governments of a major revenue stream.
22 min read
A Budget for Growth: Why the UK Must Shift from Tax Hikes to Pro-Growth Policies
The recently proposed UK budget contains several tax measures that put a greater burden on the working class and ultimately fails to tackle the deeper structural problems of the UK’s tax code.
6 min read
Who Really Pays for European Welfare States?
Who really pays for European welfare states? Many assume the answer is obvious: high-income earners contribute while low-income earners benefit. However, that assumption is only partly true, and often misleading.
6 min read
New Jersey Taxpayers Deserve Tax Relief
New Jersey’s residents deserve tax relief, and the state must stem the tide of out-migration. Affordable reforms in the near term could pave the way for more sweeping, and competitive, reforms to take root in the future.
Tax Burden on Labor in Europe, 2025
To make the taxation of labor more efficient, policymakers should understand their country’s tax wedge and how their tax burden funds government services.
5 min read
Businesses Pay and Remit 87 Percent of All Taxes Collected in Europe
Without businesses as their taxpayers and tax collectors, governments would not have the resources to provide even the most basic services.
5 min read
Taxing Powerhouses: The Systematic Role of Businesses in Collecting Government Revenue
On average, businesses in the OECD are liable for collecting, paying, and remitting more than 85 percent of the total tax collection.
15 min read
Blog
Short FormWhy Should I Care About the Corporate Tax Rate?
Smart tax policy takes into account how policy changes impact real people. Understanding who bears the burden of the corporate tax and the effects of a higher rate are essential to sound policymaking.
4 min read
Tax Burden on Labor in Europe, 2024
To make the taxation of labor more efficient, policymakers should understand the inputs into the tax wedge, and taxpayers should understand how their tax burden funds government services.
4 min read
A Comparison of the Tax Burden on Labor in the OECD, 2024
Governments often justify higher tax burdens with more extensive public services. However, the cost of these services can be more than half of an average worker’s salary.
16 min read
Tax Cuts and Jobs Act, Inflation Reduction Act, CHIPS Act: Comparing and Contrasting the New Industrial Policy
While the approaches differ, they share a reliance on similar linkages: new capital investment drives productivity growth, which grows the economy and raises wages for workers.
37 min read
Testimony: The Costs and Complexity of the Federal Tax Code Demand Reform
Lawmakers should simplify the tax code so that taxpayers can understand the laws and the IRS can administer them with minimum cost and frustration.
Montana Enacts Strong Reforms—Now, It’s Time for Sound Property Tax Relief
Montana Policymakers should pursue principled property tax reform that benefits all property owners without creating market distortions or unfairly shifting the tax burden.
5 min read
Tax Burden on Labor in Europe, 2023
To make the taxation of labor more efficient, policymakers should understand the inputs into the tax wedge, and taxpayers should understand how their tax burden funds government services.
4 min read
What’s Missing from the Tax Burden Debate
When we discuss tax policy, the conversation inevitably turns to who pays, who should pay, and how much they should pay. Unfortunately, the tax burdens debate is often missing a key point: how income transfer programs—like Social Security or Medicaid—affect households’ tax burdens.