Taxing Wages in Latin America and the Caribbean 2016

image of Taxing Wages in Latin America and the Caribbean 2016

This new high profile report provides details of taxes paid on wages in twenty economies in Latin America and the Caribbean.  It covers: personal income taxes and social security contributions paid by employees; social security contributions and payroll taxes paid by employers; cash benefits received by in-work families.

It illustrates how these taxes and benefits are calculated in each member country and examines how they impact on household incomes. The results also enable quantitative cross-country comparisons of labour cost levels and the overall tax and benefit position of single persons and families on different levels of earnings.

The publication shows the amounts of taxes and social security contributions levied and cash benefits received for eight different family types which vary by a combination of household composition and household type.  It also presents the resulting average and marginal tax rates (i.e. the tax burden). Average tax rates show that part of gross wage earnings or total labour costs which is taken in tax and social security contributions (both before and after cash benefits). Marginal tax rates show the part of a small increase of gross earnings or total labour costs that is paid in these levies.

The data presented can be used in academic research and to analyse tax, social and economic policies in Latin America and the Caribbean.



Graphical exposition of the 2013 tax burden

This chapter presents a graphical exposition of the tax burdens on labour income in 2013 by income decile. These are illustrated in separate graphs for each of two family types in each Latin American and Caribbean country. The family types are single taxpayers without children and one-earner married couples with two children.The graphs are divided into two sets showing the average and the marginal tax wedge components as percentage of total labour costs (income taxes; employee and employer social security contributions and family benefits). The graphs also show the net personal average and marginal tax rates.



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