Notes et baromètres

The Tax Burden of Typical Workers in the EU 27

IEM Study (in collaboration with Ernst & Young and New Direction – Foundation for the European Reform) / June 2011

OBJECTIVE OF THE STUDY

The purpose of this study is to compare the tax and social burdens of salaried employees in the 27 Member States of the European Union and, in doing so, determine a “tax freedom day” for individuals who are working in those countries.

STUDY INTEREST

Numerous studies have ranked political systems offering low taxes and “economic freedom.” While valuable to economists, the aggregate data in these studies fail to shed light on the working individual’s role in financing their state and social security.

In addition, many think tanks determine an annual tax freedom day for their countries. Unfortunately, conflicting approaches to this calculation make cross-border comparisons difficult.

This study aims to create an “apples to apples” comparison of tax rates, with data that reflect the reality experienced by real, working people in the European Union. Further, it will gauge the true cost of hiring employees in each state.

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