Spain provides less aid than the European average to families with children, who pay 33.8% of their income in taxes, four points more than neighboring countries
Spaniards paid 39.3% of their income in taxes in 2021, representing a 0.3 point increase in the tax burden in just one year, according to the ‘Taxing Wages’ report published by the OECD on Tuesday. This tax is almost five points higher than the average of the 38 countries that make up the organization, which stood at 34.6% in 2021, the same as the previous year.
However, it represents a two-point budget gap with the European average, which stood at 41.3% in 2021. The report data shows that Spain ranks 16th with the highest fiscal pressure, just like in 2020. Topping the list are Belgium (52.6%), Germany (48.1%), Austria (47.8%) , France (47%) and Italy (46.5%). Portugal (41.8%), is also above 40%.
Therefore, Spaniards pay almost ten points less income tax than other neighboring countries such as Germany or France, and even Italy or Portugal, although they have more comparable rates. In our country, the sum of income tax and company social security contributions accounts for 88% of the total tax burden, the report shows, compared to 77% of the average for the OECD as a whole.
On the other hand, Spain does not help families with children to the same extent as its European partners. The data confirm that Spaniards with two children pay 33.8% of their income in taxes, almost ten points above the OECD average (24.6%), but also four points more than Europe, where the average in 2021 will be 29.9 % was due to transfers or reductions in personal income tax paid by the countries to these families.
The OECD points out that in all countries the tax burden for an employee with children is usually less than for one without children, even if they have the same income, as most “provide benefits to families with children” through transfers or auxiliary taxes. In that sense, it reveals that Spain ranks 8th in the highest tax burden in the OECD for a married worker with two children, the same position it was in 2020.
In the past 20 years, the economic situation has completely changed, and with it the fiscal situation. The published data shows that the tax burden in Spain increased by 0.7 points from 2000 to 2021, from 38.6% to 39.3%, taking the average single worker as an example. Over the same period, the OECD tax burden has more than doubled, by 1.6 percentage points, from 36.2% to 34.6%.
And taking into account the situation since 2009, the tax burden in Spain has increased by one point, while in the OECD average it remained the same despite the increase in 2013.
Source: La Verdad
I’m Wayne Wickman, a professional journalist and author for Today Times Live. My specialty is covering global news and current events, offering readers a unique perspective on the world’s most pressing issues. I’m passionate about storytelling and helping people stay informed on the goings-on of our planet.
