During tax season, we are acutely aware of just how much cash is taken from our paychecks before we even have the chance to deposit them. Sure, we might think giving away a third of our paychecks is straight-up baloney. But in the grand scheme of things, it’s not that bad.
Now, hold your horses. Labeling a 31.7% average American tax rate as “not that bad” is also “not that good.” But shockingly, the average tax on laborers worldwide decreased for the third consecutive year to about 36%, according to the Organization for Economic Cooperation and Development.
The OECD highlights taxes across 35 countries in its annual taxing wages report. And we’ve narrowed in on the 15 countries that tax their citizens most. So before you make good on that post-election promise to ditch America for Europe’s slightly more inclusive policies, know it might cost you.
The largest country in Southern Europe also exercises a massive average tax wedge on its citizens. Spain is the 15th highest country for taxes on workers, a possible explanation for why employees have no qualms incorporating long lunches and afternoon breaks into their workdays. The Spaniards see a 39.5% average tax wedge for single payers and a 33.8% rate for a single-income couple with two children.
Next: Greece charges high tax rates for all people, regardless of children.