America's Tax Burden To Rise

The average American pays more in tax and social security than Canadians, Australians, the Japanese and the British.

But when you compare the American tax burden to other developed nations, the numbers don't look so bad.

New data from the Organisation for Economic Co-operation and Development compared tax rates and social security deductions on average incomes in 34 countries.

The data shows that Belgians, Germans and Danes have the highest tax burdens, while South Koreans, Mexicans and Chileans have the lowest. Americans are about in the middle.

Personal income tax has risen in 25 out of 34 OECD countries over the past three years, as countries reduce the value of tax-free allowances and tax credits and subject higher proportions of earnings to tax, according to new data in the annual Taxing Wages publication.
 
The increases in tax burdens on labour income in 2013 were largest in Portugal (due to higher statutory rates), the Slovak Republic (due to higher employer social security contributions) and the United States (due to expiry of previous reductions in employee social security contributions).
 
The average tax burden on employment incomes across the OECD increased by 0.2 of a percentage point in 2013, to 35.9 percent, according to the report. It increased in 21 out of 34 countries, fell in 12, and remained unchanged in one.
 
The 2013 rise follows a substantial increase in 2011 and a smaller one in 2012. Since 2010, the tax burden has increased in 21 OECD countries and fallen in 9, partially reversing the reductions seen between 2007 and 2010.
 
The new findings on income tax burdens are among the highlights of Taxing Wages 2014, which provides unique cross-country comparative data on income tax paid by employees as well as the associated social security contributions made by employees and employers; both are key factors when individuals consider their employment options and businesses make hiring decisions.

While some might want to complain and even go as far as saying this will hurt the working class, across the board taxes on wages are not only on the rise, they will continue rise as well this year. Seemingly harmful, this will allow business to perhaps again be flexible to hire more labor as the income once again attempts to even disburse itself throughout the masses.

Cheer up, when everyone is taxed we all wind up winner in the end. It’s the fight against taxes that will ultimately harm you.