Switzerland Among Nations with the World’s Lowest Tax Burden
Switzerland is among a handful of nations with the world’s lowest tax burden, according to the latest research from the Organisation for Economic Co-operation and Development (OECD).
Swiss nationals are shouldering one of the lowest income tax burdens in the world. In fact, Swiss individuals listed as single have the sixth lowest burden of the 34 countries analyzed by OECD, while nuclear families with one income earner and two children have the fourth lowest burden, with regards to state levies on income.
The OECD’s “Taxing Wages 2016 report” gauged income tax rates, the real tax, and the social security burden on individuals and families when calculating with the “tax wedge” formula. Account tax payments shared by employees and employees were taken into account, with tax breaks granted by the state subtracted from that.
However, the formula didn’t take fixed living costs, such as accommodation, health care, or other forms of taxation into account. In the nation of Switzerland, taxes are set to communal, cantonal, and federal levels, and taxes can depend greatly on what subdivision of a country an individual lives in.
On average, workers face a 35.9 percent tax burden throughout nations identified by OECD, which Belgium experience the highest tax wedge for single individuals at 55.3 percent. Contrarily, the south American nation of Chile claims the coveted position of lowest income tax burdens, with the 7 percent of residents living with burdensome taxes.
Across all nations surveyed by OECD, taxes on wages rose 1 percent between 2010 and 2015. However in Switzerland, the increase was just 0.2 percent. Across the board, the average tax burden stabilized in 2011.
Originally published at andrewchamberlain.ch on April 27, 2016.