Belgian workers mark 'tax liberation day'
Belgian workers are celebrating their “tax liberation day” today, the day they theoretically stop paying taxes for the year and keep the money they earn. This is according to a study by economic think tank Molinari and consultancy EY.
Belgium has some of the most heavily taxed workers in Europe. Of the 27 EU member states, plus the UK, that the study examined, Belgium ranks second. Only France taxes its workers more on average. The lowest taxes are in Cyprus, the UK and Malta.
The study calculates a tax liberation day for each country – the date on which an employee has earned enough to pay off all their taxes for the year. It also determines the average “real tax rate” for workers in each country, taking their gross salary minus all tax liabilities.
"Our neighbours pay less taxes and enjoy better healthcare, education and welfare"
The effective tax rate for a Belgian employee is 53.5 per cent, compared to an EU average of 44.3 per cent, according to the study. An employer in Belgium has to pay 2.15 euros for an average employee to have a net profit of 1 euro. In 2013, it was 2.52 euros gross for 1 euro net. At the time, that was the highest rate since the study began.
Compared to 2013, Belgian workers are “liberated” from taxes 24 days earlier and receive 8,600 euros more in net annual earnings, the study says. According to co-author James Rogers of Molinari, there are few reasons to celebrate. “It’s like getting a Volkswagen while paying for an Audi,” he says. “Our neighbours pay less taxes and enjoy better healthcare, education and welfare.”
He says that although wages have risen and the government is collecting more taxes, the tax burden is not falling. If the next federal government “does not take steps to reduce the tax burden on the middle class, Belgians will have to work even longer than the French before they get anything out of it themselves”, he said
© PHOTO IMAGEBROKER
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