Greece came in second in the taxation of workers with children among 36 OECD countries in 2019, according to the comparative report on the tax burden on labor published by the Tax Foundation and presented in our country by KEFiM.
Income taxes, payroll taxes and consumption taxes like value-added taxes (VAT) make up a large portion of tax revenue in many countries, including Greece, the statement notes. The combination of these taxes is what is called a “tax burden on labor.”
The main findings of the report on Greece:
- Compared to the OECD average of 36%, tax burden on labor in Greece is relatively high, at 40.8%.
- Tax burden on labor in our country is the 14th highest among the 36 OECD countries.
- The progressiveness of the tax burden on labor in our country is also the 14th highest among the 36 OECD countries.
- Unlike most countries with a high tax burden on labor, our country does not provide significant tax breaks for families with children. Among OECD countries, Greece has one of the smallest differences between the two tax burdens, with 40.8% for employees and 37.8% for employees with families with two children.
- Greece has the second highest family tax burden on labor at 37.8%, followed by Italy at 39.2%.
Comparison with other countries for employees
Key Findings for OECD Countries:
- Individual middle-income workers living in OECD countries paid in 2019 more than 1/3 or 36% of their salary in income taxes and payroll taxes.
- The tax burden on workers with no children in the OECD ranges from just 7% in Chile to 52.2% in Belgium.
- Of the 36 OECD countries, in 14 the labor tax burden exceeds 40%; in 14 countries it ranges between 40-30% and in 8 countries it is below 30%.
- The countries with the highest tax burden on labor are Belgium (52.2%), Germany (49.4%), Italy (48.0%), Austria (47.9%) and France (46,7%).
- The countries with the lowest tax burden on labor are Chile (7%), New Zealand (18.8%), Mexico (20.1%), Switzerland (22.3%) and Israel (22,7%). /ibna