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The countries with the highest income taxes? Belgium continues to lead the way

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The next time you decide to complain about taxes, especially income taxes, just keep in mind that The United States of America is rather well down on the list of who in the world pays the most. A recent research study published by The Organization for Economic Cooperation and Development has listed the country of Belgium as the winner hands down.

The people of Belgium pay a 42% income tax rate on their incomes. The study looked at 40 countries in the developed world and based their findings on a single person who has no children. The research took average annual salaries and then subtracted the various income taxes charged by the countries as well as any employee contributions that were made during the year.

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Apparently, income taxes in Belgium have always been rather off the charts but many Belgians have begun to see a noticeable shift. The central government has been trying to open up other areas of revenue while putting in place a plan to lower income taxes. Especially on those lower wage earners.

In a effort to raise additional revenues, Belgium has increased capital gains taxes as well as jacked taxes on fuel, tobacco products and alcohol. Capital gains, dividends and interest has largely gone free from taxes over the years in Belgium. Most of the income tax money in Belgium goes toward financing education, health care and retirement programs.

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On the extreme end of things, there is India. the average Indian worker pays no social security or income taxes. What a wage earner makes in India is all theirs. Their is, however, sales tax and the average Indian only makes about $1,200 a year. Americans only lose about an average of 25% or so of their earnings to taxes and the Canadians fare about the same. It is about the same in Germany and France but Mexicans are only losing about 10% of their income overall to taxes.

PHOTO SOURCES: internationalstudentguide.com, europeandestinations.com, Destination 360, Pinterest