Taxing Wages 2023 : Indexation of Labour Taxation and Benefits in OECD Countries / OECD.

Format:

Book

Author/Creator:

Organisation for Economic Co-operation and Development, author, issuing body.

Series:

Taxing Wages Series

Language:

English

Subjects (All):

Taxation--Law and legislation.

Taxation.

Taxation--Social aspects.

Double taxation.

Physical Description:

1 online resource (669 pages)

Edition:

1st ed.

Place of Publication:

Paris : OECD Publishing, 2023.

Summary:

This annual publication provides details of taxes paid on wages in OECD countries. This year's edition focuses on the impact of recent inflation on labour taxation in the OECD and how countries adjust their tax systems in response. For the year 2022, the report also examines personal income taxes and social security contributions paid by employees, social security contributions and payroll taxes paid by employers, and cash benefits received by workers. It illustrates how these taxes and benefits are calculated in each member country and examines how they impact household incomes. The results also enable quantitative cross-country comparisons of labour cost levels and the overall tax and benefit position of single persons and families on different levels of earnings. The publication shows average and marginal effective tax rates on labour costs for eight different household types, which vary by income level and household composition (single persons, single parents, one or two earner couples with or without children). The average tax rates measure the part of gross wage earnings or labour costs taken in tax and social security contributions, both before and after cash benefits, and the marginal tax rates the part of a small increase of gross earnings or labour costs that is paid in these levies.

Contents:

Intro

Foreword

Executive Summary

Key findings

The average tax wedge for single workers increased in a majority of countries in 2022

The average tax wedge for households with children rose across the OECD in 2022

Average wages and post-tax real incomes fell in real terms across the OECD

Indexation of labour taxation and benefits in OECD countries (Special Feature)

Notes

Part I Effective tax rates on labour income - Comparisons and trends

1 Overview

Introduction

Taxation of single workers

Tax wedge

Personal average tax rates

Single versus one-earner couple taxpayers

Taxation of two-earner married couples

Wages

References

2 Special feature: Indexation of labour taxation and benefits in OECD countries

Inflation and wage trends in OECD countries during the COVID-19 pandemic

Fiscal drag and indexation

Inflation adjustment and indexation

Indexation method

Benchmark indicator

Timing and frequency

Indexation practices in OECD countries

Automatic versus discretionary adjustment

The modalities of inflation adjustment in OECD countries

Personal income tax

Social security contributions and cash benefits

Reference period

Potential fiscal drag in the OECD

Single worker earning 100% of the average wage

Single parent earning 67% of the average wage

Combined results

Conclusion

3 Effective tax rates on labour income in 2022

Average tax rates

Marginal tax rates

4 Graphical exposition of effective tax rates in 2022

5 Effective tax rates on labour income in 2021

6 Evolution of effective tax rates on labour income (2000-22).

Long-term trends in labour taxation since 2000

Note

Part II Country details, 2022

Australia (2021-2022 Income tax year)

1. Personal income tax system

1.1. Federal income tax

1.1.1. Tax unit

1.1.2. Tax allowances and credits

1.1.2.1. Standard tax reliefs

1.1.2.2. Main non-standard tax reliefs applicable to an average worker include:

1.1.3. Tax schedule

1.2. State and local income taxes

2. Social security contributions

2.1. Employees' contributions

2.2. Employers' contributions

3. Other taxes

3.1. Pay-roll tax

4. Universal cash transfers

4.1. Transfers related to marital status

4.2. Transfers related to dependent children

4.3. Other transfers

5. Recent changes in the tax/benefit system

6. Memorandum items

6.1. Identification of an average worker

6.2. Employers' contribution to private health and pension scheme

Austria

1. Personal Income Tax

1.1. Central government income tax

1.1.2. Tax allowances

1.1.2.2. Non-standard tax reliefs

1.1.3. Rate Schedule

1.1.4. Tax credits

1.1.4.1. Standard tax credits:

1.1.4.2 Non-standard tax credit

2. Compulsory Social Security Contributions to Schemes Operated within the Government Sector

2.1. Employee and Employer Social Security Contributions

2.2. Payroll taxes

3. Universal Cash Transfers

3.1. Transfers related to marital status

3.2. Transfers for dependent children

3.3. Other cash transfers

4. Main Changes in Tax/Benefit Systems Since 2004

4.1. Changes to labour taxation due to the COVID-19 pandemic in 2020 and 2021

5. Memorandum Items

5.1. Calculation of Earnings Data

Belgium

1. Personal income tax system.

1.1. Federal government income tax

1.1.1.1. Schedule

1.1.2.1. Deduction of social security contributions

1.1.2.2. Work-related expenses

1.1.2.3. Non-earning spouse allowance (quotient conjugal)

1.1.2.4. Exempt income

1.1.2.5. Schedule

1.2. Regional and local government taxes

1.3. Tax credits

2. Compulsory social security contributions to schemes operated within the government sector

2.1. Rates and ceiling

2.2. Deductions according to family status or gender

3. Universal cash transfers

3.1. New regional system - Brussels-Capital region

3.2. Old system

4. Main changes in the tax/benefit system since 2016

5.1. Identification of AW and valuation of earnings

Canada

1. Personal Income Tax Systems

1.1. Central/federal government income taxes

1.1.2.1. Standard reliefs

1.1.2.2. Main non-standard tax reliefs applicable to an average worker:

1.2.1. General description

1.2.2. Tax regime selected for this study

2. Compulsory Social Security Contributions to Schemes Operated Within the Government Sector

2.1.1. Pensions

2.1.2. Sickness

2.1.3. Unemployment

2.1.4. Work injury

2.2.1. Pensions

2.2.2. Sickness

2.2.3. Unemployment

2.2.4. Work injury

3.2.1. Federal

3.2.2. Provincial

4. Main changes in the Tax/Benefit system since 2009.

4.1. Changes to labour taxation due to the COVID-19 pandemic in 2020 and 2021

4.1.1. CCB: extra payments

4.1.2. GST credit: one-time supplementary payment and extending benefit payments

4.2. Identification of an Average Worker

4.3. Employer contributions to private health and pension schemes

Chile

1.1.2.2. Main non-standard tax reliefs

3.1. Marital status-related transfers

3.2. Transfers related to dependent children

4. Recent changes in the tax/benefit system

4.1. Changes to labour taxation due to the COVID pandemic in 2020 and 2021

5. Memorandum items

5.1. Identification of an average worker

5.2. Employers' contribution to private health and pension schemes

Colombia

1.1.2.2 Main non-standard tax reliefs

4. Main Changes in Tax/Benefit Systems Since 2019

4.1. Changes to labour taxation due to the COVID pandemic in 2020 and 2021.

5. Memorandum items

5.1. Identification of an average worker and calculation of earnings

Costa Rica

1.1.2. Tax allowances and tax credits

Standard tax allowances and tax credits

Main non-standard tax allowances and tax credits

1.2. State and local taxes

2.1. Employee contributions

2.2. Employer contributions

4.1. Changes to labour taxation due to the COVID pandemic in 2020, 2021 and 2022

Czech Republic

1. Personal Income Tax System

1.1. Central government income taxes

Standard reliefs

Main non-standard tax reliefs applicable to an AW

Tax schedule

Tax credits

1.2. State and local income tax

3.3. Additional transfers

4. Main Changes in Tax/Benefit Systems since 2022

5.2. Employers' contributions to private pension, health and related schemes

Denmark

1.1. Tax allowances and tax credits.

Notes:

Description based on publisher supplied metadata and other sources.

ISBN:

92-64-59193-1