Paul L. Caron
Dean



Monday, September 5, 2016

Labor Day And The Tax Burden On Labor

Kyle Pomerleau & Kevin Adams (Tax Foundation), A Comparison of the Tax Burden on Labor in the OECD, 2016:

Although the United States and most OECD countries are known for having progressive tax systems that tax high-income earners more than low- or moderate-income earners, a large portion of the tax burden still falls on the average worker. Even here in the United States, which has a lower tax burden than most other OECD countries, average workers end up paying nearly one-third of their incomes in taxes. It is true that governments in the OECD, especially European countries, provide more government programs. However, their workers end up paying a much higher price for them.

Tax Foundation 1

Tax Foundation 2

Tax Foundation 3

https://taxprof.typepad.com/taxprof_blog/2016/09/labor-day-and-the-tax-burden-on-labor.html

Tax, Think Tank Reports | Permalink

Comments

"It is true that governments in the OECD, especially European countries, provide more government programs. However, their workers end up paying a much higher price for them."

Followed by,

"The tax burden on U.S. workers is slightly below the OECD average".

So, which is it? Is this an invocation of Baudelaire's famous "right to contradict oneself"? In any case, isn't the real question, "do the average U.S. workers receive the same value for their tax dollars as their OECD counterparts, at least in terms of social benefits?" According to the chart, the answer appears to be "no".

Posted by: Rob T. | Sep 6, 2016 8:04:55 AM