Only French and Austrian workers are taxed more than their Belgian counterparts. Public services fall short of the taxes paid.
LBelgian workers are again the third most taxed in the European Union and occupy the same position among a global group of 34 countries, according to The Tax Burden on Global Workers study published on Monday. Belgium follows France and Austria, countries where wages are the most taxed.
This report, written by James Rogers and Nicolas Marques of the Molinari Economic Institute, uses OECD figures and salary data from national statistical offices as a reference.
“The“ tax shift ”has proven that reducing labor taxes reduces unemployment and increases purchasing power. Yet Belgians are still among the average earners paying the highest taxes in the world. In return, they do not have access to public services with a good value for money ”, underline the authors. “Workers in other countries pay lower taxes while getting better health care, better education and well-being in return. “
Tax release day
Among workers in the 34 countries studied, Belgians are the sixth most expensive to hire – yet Belgians still rank thirteenth in terms of take-home pay, the study notes. For an average worker, an employer in Belgium spends 2.10 euros for 1 euro of net salary after tax, a drop after a peak of 2.34 euros in 2013.
In addition, the real tax rate for a Belgian employee (including VAT) is now 53.95%, compared to an average of 44.5% for the 28 EU countries and a world average of 41 , 89%.
Friday July 16 was the day of tax liberation for Belgian workers. This date corresponds to the day in the civil calendar when a worker in theory stops working to pay taxes to the state and begins to retain his income. With our French neighbors and the Austrians, the day of the tax release falls this Monday, July 19.