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![Understanding Why Full Expensing Matters, Full expensing is also known as accelerated depreciation of capital investments, Learn more about accelerated cost recovery of investments.](https://taxfoundation.org/wp-content/uploads/2019/11/factory-manufacturing-workers-e1574781178257-300x200.jpeg)
The U.S. Tax Burden on Labor, 2020
Although the U.S. has a progressive tax system and a relatively low tax burden compared to the OECD average, average-wage workers still pay about 30 percent of their wages in taxes.
15 min read![Tax Burden on Labor in the OECD, France Tax burden on labor, Spain tax burden on labor, Greece tax burden on labor, UK tax burden on labor, Austria tax burden on labor](https://taxfoundation.org/wp-content/uploads/2020/03/economy-business-workers-corproate-e1583775377857-300x169.jpeg)
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![depreciation Capital allowances and capital cost recovery across OECD countries, 2021. Learn more about capital allowance and capital recovery.](https://taxfoundation.org/wp-content/uploads/2020/04/factory-business-worker-manufacturing-e1586276659107-300x200.jpeg)
Capital Cost Recovery across the OECD, 2020
Although sometimes overlooked in discussions about corporate taxation, capital cost recovery plays an important role in defining a business’s tax base and can impact investment decisions—with far-reaching economic consequences.
27 min read![OECD tax revenues 2021 sources of government revenue in the oecd, 2019, government tax revenue corporate tax revenue corporate tax revenues](https://taxfoundation.org/wp-content/uploads/2019/04/Sources-of-government-revenue-euros-CROP-e1555963525137-300x188.jpeg)
Sources of Government Revenue in the OECD, 2020 Update
OECD countries have on average become more reliant on consumption taxes and less reliant on individual income taxes. These policy changes matter, considering that consumption-based taxes raise revenue with less economic damage and distortionary effects than taxes on income.
13 min read![2019 corporate tax rates around the world. 2019 corporate tax trends around the world](https://taxfoundation.org/wp-content/uploads/2019/12/CIT-around-the-world-front-page-graphic-01-01-e1575929872626-300x200.png)
Corporate Tax Rates around the World, 2019
Since 1980, corporate tax rates have consistently declined on a global basis. More countries have shifted to taxing corporations at rates lower than 30 percent, with the United States following this trend with its tax changes at the end of 2017.
14 min read![2019 International Tax Competitiveness Index](https://taxfoundation.org/wp-content/uploads/2019/10/ITCI_graphics-fv-23-300x229.png)
International Tax Competitiveness Index 2019
Our International Index compares OECD countries on over 40 variables that measure how well each country’s tax system promotes sustainable economic growth and investment.
11 min read![U.S. tax burden on labor, US tax burden on labor, US tax wedge, U.S. tax wedge](https://taxfoundation.org/wp-content/uploads/2019/05/worker-labor-factory-training-job-e1558558598807-300x200.jpeg)
The U.S. Tax Burden on Labor, 2019
13 min read![savings and investment OECD capital gains tax retirement accounts stock income tax burden on labor, sales tax burden europe tax burden on labor tax burden europe 2019 OECD tax burden](https://taxfoundation.org/wp-content/uploads/2019/05/OECD-tax-burden-on-labor-money-currency-e1558464492963-300x87.jpeg)
![OECD tax revenues 2021 sources of government revenue in the oecd, 2019, government tax revenue corporate tax revenue corporate tax revenues](https://taxfoundation.org/wp-content/uploads/2019/04/Sources-of-government-revenue-euros-CROP-e1555963525137-300x188.jpeg)
Sources of Government Revenue in the OECD, 2019 Update
OECD countries have on average become more reliant on consumption taxes and less reliant on individual income taxes. These policy changes matter, considering that consumption-based taxes raise revenue with less economic damage and distortionary effects than taxes on income.
10 min read![capital cost recovery across the oecd, capital cost recovery 2019 capital recovery capital allowance capital allowances](https://taxfoundation.org/wp-content/uploads/2019/04/factory-machinery-equipment-tech-enhanced-300x200.jpg)
Capital Cost Recovery across the OECD, 2019
Capital cost recovery, though often overlooked, can have a significant impact on investment decisions—with far-reaching economic consequences.
24 min read![Income changes over the course of an individual's life, average incomes rise with age, average income age income inequality](https://taxfoundation.org/wp-content/uploads/2019/03/PaF-Chart-121-300x228.png)
Average Income Tends to Rise with Age
Average income tends to rise dramatically as someone ages and gains education and experience. Viewing just one year of income tax data without digging any deeper misses some crucial context.
2 min read![The U.S. now has fewer corporations and more individually owned businesses, increasing individual income tax rates](https://taxfoundation.org/wp-content/uploads/2019/03/Paf-increasing-featured-01-300x287.png)
Increasing Individual Income Tax Rates Would Impact a Majority of U.S. Businesses
Since most U.S. businesses are pass-through businesses, such as partnerships, S corporations, LLCs, and sole proprietorships, changes to the individual income tax, especially to top marginal rates, can affect a business’s incentives to invest, hire, and produce.
3 min read![Americans zero income tax liability percentage of nonpayers has increased over time, progressive tax code.](https://taxfoundation.org/wp-content/uploads/2019/03/paf-5-featurd-01-300x287.png)
A Growing Percentage of Americans Have Zero Income Tax Liability
From 1986 to 2016, the top 1 percent’s share of income taxes rose from 25.8 percent to 37.3 percent, while the bottom 90 percent’s share fell from 45.3 percent to 30.5 percent.
3 min read![Who Benefits from Itemized Deductions? High income taxpayers tax breaks](https://taxfoundation.org/wp-content/uploads/2019/03/Tax-Filing-Individual-e1551986717705-300x200.jpeg)
Who Benefits from Itemized Deductions?
While some tax preferences like the earned income tax credit (EITC) and child tax credit benefit lower- and middle-income households, others, like itemized deductions, benefit high-income households.
4 min read![marginal tax rates, taxes on the rich. top 1 percent tax rates, effective tax rate](https://taxfoundation.org/wp-content/uploads/2019/03/money-dollar-21-300x159.jpg)
The Top 1 Percent’s Tax Rates Over Time
In the 1950s, when the top marginal income tax rate reached 92 percent, the top 1 percent of taxpayers paid an effective rate of only 16.9 percent. As top marginal rates have fallen, the tax burden on the rich has risen.
4 min read![Income and payroll taxes make up a growing share of federal revenue, income tax, payroll tax, corporate tax, tax revenue, federal revenue](https://taxfoundation.org/wp-content/uploads/2019/02/PAF-Chart-4-300x228.png)
The Composition of Federal Revenue Has Changed Over Time
The federal income tax and federal payroll tax make up a growing share of federal revenue. Individual income taxes have become a central pillar of the federal revenue system, now comprising nearly half of all revenue.
2 min read![Effective tax rates on the top o.1 percent of u.s. households, taxing the rich, taxes on the rich, tax the rich](https://taxfoundation.org/wp-content/uploads/2019/01/money3-300x200.jpg)
Income Taxes on the Top 0.1 Percent Weren’t Much Higher in the 1950s
Recent plans to increase the tax burden on wealthy Americans, such as higher marginal income tax rates and wealth taxes, are flawed in several ways, including in their lack of understanding of tax history.
4 min read![The overall U.S. Tax System is Progressive, U.S. progressive tax code, high-income individuals, income tax, High-Income taxpayers pay the highest average income tax rate, U.S. progressive tax code](https://taxfoundation.org/wp-content/uploads/2019/01/622-featured-01-300x287.png)
America Already Has a Progressive Tax System
Recent interest in raising the tax burden on high-income individuals glosses over the fact that the U.S. federal tax code is already progressive.
3 min read![flags from all over the world where there are differing Corporate Tax Rates](https://taxfoundation.org/wp-content/uploads/2018/11/international1-300x200.jpg)
Corporate Tax Rates Around the World, 2018
Since 1980, the worldwide average statutory corporate tax rate has consistently decreased as countries have realized the negative impact that corporate taxes have on business investment decisions.
10 min read