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.