Figure 4

Average American workers pay low taxes compared to EU countries

Consumption tax–inclusive tax wedge for single childless worker making average wage

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Sources: Author’s calculations, updating Michel, Adam N. “A Bigger Government Means Giving Up Almost Half Your Paycheck,” Policy Analysis no. 981, Cato Institute, Washington, DC, October 10, 2024 using Taxing Wages 2025: Decomposition of Personal Income Taxes and the Role of Tax Reliefs (Paris: OECD, 2025).