Here's the countries where taxes are highest

Spoiler: The U.S. is not number one.
APR 12, 2017
By  Bloomberg

Americans generally feel they're being over-taxed, especially around this time of the year. Even their president agrees: "With lower taxes on America's middle class and businesses, we will see a new surge of economic growth and development," Donald J. Trump said this month, expanding on an earlier promise to cut Uncle Sam's bill "massively." But the reality is that the average U.S. worker pays quite a bit less than he would elsewhere in the developed world. And what's more, this has been the case for a long time. The Organization for Economic Cooperation and Development analyzed how 35 countries tax wage-earners, making it possible to compare tax burdens across the world's biggest economies. Each year, the OECD measures what it calls the "tax wedge," the gap between what a worker gets paid and what they actually spend or save. Included are income taxes, payroll taxes and any tax credits or rebates that supplement worker income. Excluded are the countless other ways that governments levy taxes, such as sales and value-added taxes, property taxes and taxes on investment income and gains. Guess who came out at the top of the list? No. Not the U.S. At the top are Belgium and France, while workers in Chile and New Zealand are taxed the least. America is in the bottom third. http://www.investmentnews.com/wp-content/uploads/assets/graphics src="/wp-content/uploads2017/04/CI109935412.JPG" A single worker earning an average wage in Belgium ends up paying a tax rate almost eight times higher than the average single worker in Chile, the OECD found. But one simple number can be deceiving if you're trying to paint a national picture. Married people and those with children tend to pay different tax rates than single, childless taxpayers. And in most countries, including the U.S., the well-off pay far more than lower-income people. When the OECD analyzed married couples with children, the rankings looked a little different. New Zealand ends up with the lowest rate, while France ranks number one. http://www.investmentnews.com/wp-content/uploads/assets/graphics src="/wp-content/uploads2017/04/CI109936412.JPG" But let's get back to America. The average single U.S. worker with no kids earned $52,543 last year and paid a combined $13,649 in payroll taxes, federal income tax, state and local government taxes . Their employer pitched in another $4,020 in payroll taxes. That overall rate, of 31.7%, might seem like a lot, but it's more than 4 points below the OECD average. http://www.investmentnews.com/wp-content/uploads/assets/graphics src="/wp-content/uploads2017/04/CI109933412.JPG" In every other scenario analyzed by the OECD in its 584-page "Taxing Wages" report, the U.S. tax burden was also below average, from 3 points to almost 6 points depending on the taxpayers' wages, marital status and number of children. In fact, the tax burden on most American workers hasn't budged much over the last two decades, despite tax cuts under former President George W. Bush and upper-income tax hikes under former President Barack Obama. http://www.investmentnews.com/wp-content/uploads/assets/graphics src="/wp-content/uploads2017/04/CI109934412.JPG" Workers in two of the world's highest-taxed countries did get some relief last year. The average tax burden for singles fell by 2.5 percentage points in Austria and by 1.3 points in Belgium from 2015 to 2016. Otherwise, the OECD data suggest that a country's tax burden usually stays remarkably consistent from year to year and decade to decade. The only reliable way to change your tax burden may be to move.

Latest News

What advisors need to know about SECURE 2.0’s impact on retirement income planning
What advisors need to know about SECURE 2.0’s impact on retirement income planning

Catch-up contributions, required minimum distributions, and 529 plans are just some of the areas the Biden-ratified legislation touches.

EToro to tokenize US stocks on Ethereum network for 24/7 trading
EToro to tokenize US stocks on Ethereum network for 24/7 trading

Following a similar move by Robinhood, the online investing platform said it will also offer 24/5 trading initially with a menu of 100 US-listed stocks and ETFs.

GTCR to acquire FMG Suite, expanding its wealth tech portfolio
GTCR to acquire FMG Suite, expanding its wealth tech portfolio

The private equity giant will support the advisor tech marketing firm in boosting its AI capabilities and scaling its enterprise relationships.

$29B Lido Advisors expands in Utah with Olympus Wealth Management
$29B Lido Advisors expands in Utah with Olympus Wealth Management

The privately backed RIA's newest partner firm brings $850 million in assets while giving it a new foothold in the Salt Lake City region.

Annuities hit new $223B high in H1 2025, LIMRA says
Annuities hit new $223B high in H1 2025, LIMRA says

The latest preliminary data show $117 billion in second-quarter sales, but hints of a slowdown are emerging.

SPONSORED How advisors can build for high-net-worth complexity

Orion's Tom Wilson on delivering coordinated, high-touch service in a world where returns alone no longer set you apart.

SPONSORED RILAs bring stability, growth during volatile markets

Barely a decade old, registered index-linked annuities have quickly surged in popularity, thanks to their unique blend of protection and growth potential—an appealing option for investors looking to chart a steadier course through today's choppy market waters, says Myles Lambert, Brighthouse Financial.