Latest news with #TaxingWages2025
Euronews
3 days ago
- Business
- Euronews
Eurozone inflation falls below ECB 2% target in May: Rate cut in sight
Inflation in the euro area cooled more than expected in May, bolstering expectations that the European Central Bank (ECB) will announce another interest rate cut at its meeting on Thursday. Annual consumer price growth slowed to 1.9% in May, down from 2.2% in April, according to a flash estimate from Eurostat. The figure came in below economists' forecast of 2%, and marks the first time inflation has dipped below the ECB's 2% target since September 2024. The decline in headline inflation suggests that business uncertainty, partly driven by renewed global trade tensions and soft consumer demand, is weighing on pricing power across sectors. Core inflation, which strips out volatile food and energy prices, also showed signs of easing. It slowed to 2.4% in May, from 2.7% in April, falling below expectations of 2.5%. On a monthly basis, core prices rose by just 0.1%. Among the main inflation components, food, alcohol and tobacco remained the strongest driver, rising 3.3% year-on-year, up from 3.0% in April. Services inflation, which had been particularly resilient, dropped sharply from 4.0% to 3.2%, contributing significantly to the broader deceleration. Non-energy industrial goods recorded a stable 0.6% annual increase, while energy prices continued their downward trajectory, declining by 3.6% compared to a year ago. On a monthly basis, overall inflation was flat, after a 0.6% rise in April, signalling a clear slowdown in momentum. The highest annual rates were recorded in Estonia (4.6%), Slovakia and Croatia (both 4.3%). France registered the lowest inflation, at just 0.6%, suggesting a stark divergence in price pressures among euro area members. Monthly inflation was highest in Portugal and Croatia, where prices rose 0.7% and 0.6%, respectively. By contrast, deflationary readings were observed in Belgium, Spain, France, Lithuania, the Netherlands, Austria and Slovenia. In a separate release, Eurostat reported that the euro area unemployment rate fell to 6.2% in May, down from 6.3% in March and 6.4% a year earlier. Market bets on ECB easing The euro lost ground against the dollar following the inflation print, dropping to $1.1400 as investors moved to fully price in a 25-basis-point cut to the ECB's deposit facility rate on Thursday. The cut would bring the deposit facility rate to 2.0%, its lowest level since January 2023. Eurozone sovereign bonds remained broadly. The yield on Germany's two-year bond, which is sensitive to ECB policy moves, traded at 1.77%. European equities edged lower on Tuesday morning, with the Euro STOXX 50 down 0.8%, after the OECD cut its global growth outlook, pointing to a slowdown fuelled by rising trade tensions. Orange, Société Générale and LVMH led losses, falling 3%, 1.9% and 1.6%, respectively. Deutsche Telekom gained 2%, emerging as the top performer among eurozone blue-chip stocks. Among the 27 European countries covered in the OECD's Taxing Wages 2025 report, seven recorded a decline in real post-tax income in 2024 compared to 2023 for the average single worker without children. This measure reflects the amount of money left to spend or save after taxes are deducted and inflation is taken into account. The countries affected were Italy, Estonia, Czechia, France, Greece, Belgium, and Spain. In Italy, the average wage increased by 3.9% in 2024. With inflation at 1.2%, this translated to a real wage growth of 2.7% before taxes. However, the personal average tax rate—which includes both personal income tax and employee social security contributions—rose sharply by 7.5%. This created a significant gap between real wage growth and the increase in personal taxation, ultimately eroding much of the benefit from higher wages. Cristina Enache, global tax economist at the Tax Foundation, emphasised the impact of increased social security contributions. While this highlights a growing gap between wages and taxation, it doesn't directly reveal how much real post-tax income changed. Personal average tax rates also increased by more than 4.5% in Estonia and Czechia, leading to lower real post-tax incomes in 2024, as real wage growth did not keep pace. Enache of the Tax Foundation noted that in Estonia, the tax burden rise was driven by the removal of certain tax allowances. In Czechia, the increase was primarily due to higher social security contributions from either employees or employers. In France, real wages grew by 0.7%, but the personal average tax rate increased by 1.7%, resulting in lower real post-tax incomes compared to 2023. During this period, Portugal, the UK, and Turkey recorded the highest increases in real post-tax incomes. In Portugal, the personal average tax rate fell by 8%, while real wages grew by 4.7%. 'Portugal reduced its income tax rates for the first six tax brackets, reducing the overall tax wedge for the average income earner,' Cristina Enache told Euronews. In the UK, the average tax rate dropped by 8.7%, although real wage growth was modest at 1.6%. In Turkey, despite a 3.9% increase in the personal average tax rate, a substantial 15.5% rise in real wages led to significantly higher real post-tax incomes in 2024 compared to 2023. However, some critics have accused the national statistical office of manipulating inflation figures. Cristina Enache explained that "real post-tax income" refers to the income a person takes home after taxes, adjusted for inflation. 'A lower real post-tax income means that after taxes and inflation, the individual has less money to spend. Therefore, a decrease in the real post-tax income between 2023 and 2024 means that the worker earning the average wage is losing purchasing power,' she said. 'Bracket creep' occurs when income growth causes individuals to pay higher average income tax rates over time. This typically happens when inflation pushes taxpayers into higher tax brackets or erodes the value of tax credits, deductions, and exemptions. According to the Tax Foundation, 'bracket creep' leads to higher income taxes without any real increase in income. 'Indexing the income tax (and, depending on the design, the social security contributions) to inflation would avoid bracket creep and could mitigate the decrease in real post-tax income for workers,' Enache pointed out. The Euronews article titled 'Where did real wages rise and fall the most in Europe in 2024?' takes a closer look at how wages changed compared to 2023—examining nominal increases, inflation, real wage growth, and average salaries.
Yahoo
3 days ago
- Business
- Yahoo
Where in Europe are workers losing ground as taxes rise faster than wages?
Among the 27 European countries covered in the OECD's Taxing Wages 2025 report, seven recorded a decline in real post-tax income in 2024 compared to 2023 for the average single worker without children. This measure reflects the amount of money left to spend or save after taxes are deducted and inflation is taken into account. The countries affected were Italy, Estonia, Czechia, France, Greece, Belgium, and Spain. In Italy, the average wage increased by 3.9% in 2024. With inflation at 1.2%, this translated to a real wage growth of 2.7% before taxes. However, the personal average tax rate—which includes both personal income tax and employee social security contributions—rose sharply by 7.5%. This created a significant gap between real wage growth and the increase in personal taxation, ultimately eroding much of the benefit from higher wages. Cristina Enache, global tax economist at the Tax Foundation, emphasised the impact of increased social security contributions. While this highlights a growing gap between wages and taxation, it doesn't directly reveal how much real post-tax income changed. Personal average tax rates also increased by more than 4.5% in Estonia and Czechia, leading to lower real post-tax incomes in 2024, as real wage growth did not keep pace. Enache of the Tax Foundation noted that in Estonia, the tax burden rise was driven by the removal of certain tax allowances. In Czechia, the increase was primarily due to higher social security contributions from either employees or employers. In France, real wages grew by 0.7%, but the personal average tax rate increased by 1.7%, resulting in lower real post-tax incomes compared to 2023. During this period, Portugal, the UK, and Turkey recorded the highest increases in real post-tax incomes. In Portugal, the personal average tax rate fell by 8%, while real wages grew by 4.7%. 'Portugal reduced its income tax rates for the first six tax brackets, reducing the overall tax wedge for the average income earner,' Cristina Enache told Euronews. In the UK, the average tax rate dropped by 8.7%, although real wage growth was modest at 1.6%. In Turkey, despite a 3.9% increase in the personal average tax rate, a substantial 15.5% rise in real wages led to significantly higher real post-tax incomes in 2024 compared to 2023. However, some critics have accused the national statistical office of manipulating inflation figures. Cristina Enache explained that "real post-tax income" refers to the income a person takes home after taxes, adjusted for inflation. 'A lower real post-tax income means that after taxes and inflation, the individual has less money to spend. Therefore, a decrease in the real post-tax income between 2023 and 2024 means that the worker earning the average wage is losing purchasing power,' she said. 'Bracket creep' occurs when income growth causes individuals to pay higher average income tax rates over time. This typically happens when inflation pushes taxpayers into higher tax brackets or erodes the value of tax credits, deductions, and exemptions. According to the Tax Foundation, 'bracket creep' leads to higher income taxes without any real increase in income. 'Indexing the income tax (and, depending on the design, the social security contributions) to inflation would avoid bracket creep and could mitigate the decrease in real post-tax income for workers,' Enache pointed out. The Euronews article titled 'Where did real wages rise and fall the most in Europe in 2024?' takes a closer look at how wages changed compared to 2023—examining nominal increases, inflation, real wage growth, and average salaries. Sign in to access your portfolio
Euronews
3 days ago
- Business
- Euronews
Which European countries are seeing taxes outpace real wage growth?
Among the 27 European countries covered in the OECD's Taxing Wages 2025 report, seven recorded a decline in real post-tax income in 2024 compared to 2023 for the average single worker without children. This measure reflects the amount of money left to spend or save after taxes are deducted and inflation is taken into account. The countries affected were Italy, Estonia, Czechia, France, Greece, Belgium, and Spain. In Italy, the average wage increased by 3.9% in 2024. With inflation at 1.2%, this translated to a real wage growth of 2.7% before taxes. However, the personal average tax rate—which includes both personal income tax and employee social security contributions—rose sharply by 7.5%. This created a significant gap between real wage growth and the increase in personal taxation, ultimately eroding much of the benefit from higher wages. Cristina Enache, global tax economist at the Tax Foundation, emphasised the impact of increased social security contributions. While this highlights a growing gap between wages and taxation, it doesn't directly reveal how much real post-tax income changed. Personal average tax rates also increased by more than 4.5% in Estonia and Czechia, leading to lower real post-tax incomes in 2024, as real wage growth did not keep pace. Enache of the Tax Foundation noted that in Estonia, the tax burden rise was driven by the removal of certain tax allowances. In Czechia, the increase was primarily due to higher social security contributions from either employees or employers. In France, real wages grew by 0.7%, but the personal average tax rate increased by 1.7%, resulting in lower real post-tax incomes compared to 2023. During this period, Portugal, the UK, and Turkey recorded the highest increases in real post-tax incomes. In Portugal, the personal average tax rate fell by 8%, while real wages grew by 4.7%. 'Portugal reduced its income tax rates for the first six tax brackets, reducing the overall tax wedge for the average income earner,' Cristina Enache told Euronews. In the UK, the average tax rate dropped by 8.7%, although real wage growth was modest at 1.6%. In Turkey, despite a 3.9% increase in the personal average tax rate, a substantial 15.5% rise in real wages led to significantly higher real post-tax incomes in 2024 compared to 2023. However, some critics have accused the national statistical office of manipulating inflation figures. Cristina Enache explained that "real post-tax income" refers to the income a person takes home after taxes, adjusted for inflation. 'A lower real post-tax income means that after taxes and inflation, the individual has less money to spend. Therefore, a decrease in the real post-tax income between 2023 and 2024 means that the worker earning the average wage is losing purchasing power,' she said. 'Bracket creep' occurs when income growth causes individuals to pay higher average income tax rates over time. This typically happens when inflation pushes taxpayers into higher tax brackets or erodes the value of tax credits, deductions, and exemptions. According to the Tax Foundation, 'bracket creep' leads to higher income taxes without any real increase in income. 'Indexing the income tax (and, depending on the design, the social security contributions) to inflation would avoid bracket creep and could mitigate the decrease in real post-tax income for workers,' Enache pointed out. The Euronews article titled 'Where did real wages rise and fall the most in Europe in 2024?' takes a closer look at how wages changed compared to 2023—examining nominal increases, inflation, real wage growth, and average salaries. The HCOB Eurozone Manufacturing PMI for May 2025 was 49.4, up from 49.0 in April, according to S&P Global. However, this is still in contraction territory, as it was below 50, and marked the slowest pace of contraction in the manufacturing sector since August 2022. Meanwhile, output rose for the third month in a row, with new orders stabilising after almost three years of decline. The rate of backlog depletion also dropped to the slowest pace since June 2022. On the other hand, employment levels continued to lag, although they decreased at the slowest rate since September 2023. Input costs fell for the second consecutive month, which was the fastest decline in 14 months, while output prices slid for the first time since February this year. Business confidence rose to the highest level in more than three years in May. Dr. Cyrus de la Rubia, chief economist at Hamburg Commercial Bank, said in the May Eurozone PMI report: 'The upward trend in the headline PMI is still continuing, pointing towards a recovery that is progressing. That is backed up by the rise in production we have seen since March. 'What is especially encouraging is that production has picked up across all four major eurozone economies, which really highlights how broad-based this recovery is. With output rising for three months in a row, historical patterns suggest there is a 72% chance we will see another increase in the next month.' However, he highlighted that the possibility of the US imposing steeper tariffs against the EU is a major risk to this outlook. 'Still, companies are noticeably more upbeat than they were last month about producing more a year from now, which shows a certain resilience, even in the face of potential protectionist moves from across the Atlantic,' de la Rubia added. Falling oil and gas prices and lower interest rates supported the eurozone manufacturing sector in May, with production rising in France, Germany, Spain and Italy. The HCOB Spain manufacturing PMI for May was 50.5, a jump from April's 48.1, according to S&P Global. This was ahead of analyst expectations of 48.4. After three straight months of contraction, this was the first expansion in the Spanish manufacturing sector, while also being the highest number since January. May's higher figure could be because of underlying demand improving slightly. While uncertainties affected the sector significantly in April, the market seemed to readjust a little in May. Spanish manufacturing sales volumes fell in May, however, the decline was the smallest in four months. Companies continued to hire for the third consecutive month, while input costs fell for the first time since the beginning of last year. Output prices also dropped at the fastest rate since September 2024, mainly due to higher market competition. Similarly, output sentiment for the next 12 months rose to a three-month high. Jonas Feldhusen, junior economist at Hamburg Commercial Bank, said in the May Spain PMI report: 'Spain's manufacturing sector sent encouraging signals in May. Whether this improvement is partly attributable to early signs of easing in the global tariff conflict remains uncertain. 'While Spain's direct dependence on the U.S. market is relatively limited compared to countries like Germany or Italy, indirect effects from a generally improved global trade outlook may also be contributing.' The HCOB Germany manufacturing PMI for May came down to 48.3, down from April's 48.4, according to S&P Global. This was the 35th month in a row of contraction in the German manufacturing sector, although output advanced for the third month in a row. Manufacturing output was mainly supported by rising export orders from the US and Europe, although overall new orders still fell marginally, dampened by lagging domestic demand. Job cuts slowed to the weakest pace since January 2024, with input stock declines and purchasing activity decreases also slowing. Input prices continued to fall, dragged down by lower oil prices, lagging demand and a stronger euro. Robust competition led to more factory gate price cuts in May, while optimism about future output soared to the highest level since early 2022. Dr. Cyrus de la Rubia noted in the May Germany PMI report: 'Most people have got so used to gloomy headlines from the industrial sector that the good news often slips under the radar. That is why it is worth looking beyond the headline PMI figure, which dipped slightly and is still in contraction territory. The broader picture actually shows some encouraging signs. 'Production has now increased for the third month in a row, and foreign orders have been on the rise for two straight months. What's more, the uptick in output is not limited to just one area – it is showing up across the board, in capital goods, intermediate goods and consumer goods.' He further noted that business sentiment may be optimistic due to the formation of a new government, along with a large infrastructure package, the promise of tax breaks and plans to increase defence spending.
Euronews
12-05-2025
- Business
- Euronews
Where did real wages rise and fall the most in Europe in 2024?
Annual gross wages increased in nominal terms in nearly all 32 European countries in 2024, with the exception of a very slight decline in Finland. However, this does not take inflation into account. When adjusted for consumer price inflation, real wages slightly decreased in four countries. This shows that the impact of nominal wage increases is reduced when inflation is considered. So, which European countries saw the biggest real wage gains and cuts in 2024? The figures are based on a single worker without children earning the average wage, expressed in national currencies. According to the OECD's Taxing Wages 2025 report and Eurostat data, among EU countries, the UK, three EFTA members, and candidate country Turkey, Turkey stands out as an outlier with an 82.9% increase in annual nominal gross wages in 2024 compared to 2023. This sharp rise is largely driven by the country's very high inflation rate of 58.3%. Still, this was enough to give Turkey the highest real wage growth before tax, at 15.5%. On the other hand, opposition parties and the former head of TurkStat have claimed that the official inflation figures are manipulated, suggesting the actual rate may be significantly higher. Romania followed Turkey in both nominal (20.9%) and real wage growth (14.3%). A lower inflation rate of 5.8% contributed to Romania's stronger real wage increase. Bulgaria ranks third in real wage growth at 9.2%, driven by a 12% nominal wage increase and a relatively low inflation rate of 2.6%. Apart from these three countries, real wage growth also exceeded 7% in five others: Malta (9%), Hungary (8.9%), Latvia (8.4%), Poland (7.8%) and Lithuania (7.2%). Southern European countries recorded modest real wage gains. Italy saw a 2.7% increase, Greece 1.7%, Spain 1.9%, and Cyprus 2.1%. These figures are higher than those in much of Western Europe. However, they remain well below the strong growth seen in Eastern Europe. Among Europe's five largest economies, Italy recorded the highest real wage growth at 2.7%, followed by Germany (2.2%) and Spain (1.9%). The UK saw a 1.6% increase, while France reported the lowest growth at just 0.7%. Four countries recorded negative real wage growth. That means wages did not keep up with inflation, so purchasing power declined in these countries. Belgium recorded the largest real wage decline at 1% in 2024. Two Nordic countries—Finland (-0.9%) and Iceland (-0.7%)—also saw negative growth. Luxembourg experienced a slight decline of 0.4% in real wages compared to 2023. These figures indicate strong real wage growth in Eastern Europe, while Southern and Central Europe experienced more moderate increases. The Nordic and Benelux countries recorded mostly flat or negative real wage growth. Among the 32 countries, Finland was the only one where nominal average wages declined in 2024—though only slightly, by just €14, from €52,907 to €52,893. With annual inflation at just 0.9%, the resulting real wage decline was minimal. All these changes reflect wages before tax. Therefore, any changes in personal income tax or employee social security contributions may affect net earnings. According to the report, in 2022 and 2023, real wages had declined in a majority of OECD countries, including Europe. When comparing inflation rates across Europe in 2024, Turkey was a clear outlier with an exceptionally high rate of 58.3%, as shown in the table above. No other country recorded inflation above 6%. These figures reflect the 12-month average rate of change as of December 2024, with some based on OECD estimates. Risk-on sentiment continued to dominate global market trends during Monday's Asian session after officials from the US and China signalled 'substantial progress' following two days of trade negotiations in Switzerland over the weekend. China's Vice Premier, He Lifeng, described the meeting as 'an important first step' towards resolving differences, with both sides agreeing to establish a mechanism for further discussions. However, no specific details were provided regarding the points of agreement or the timeline for subsequent meetings. US Treasury Secretary Scott Bessent stated that more information would be shared on Monday, while he noted that a joint statement would be released. Optimism toward a potential de-escalation in trade tensions between the US and China fuelled risk-on sentiment, with stock markets rallying and safe-haven assets declining. As of 5:30 am CEST, US stock futures had surged, with the Dow up 1.12%, the S&P 500 rising 1.46%, and the Nasdaq Composite gaining 1.93%. European equities were also poised for a higher open. Among major stock futures, Germany's DAX advanced 0.85%, reaching a fresh high; the Euro Stoxx 600 rose 0.8%; and the UK's FTSE 100 climbed 0.36%. Asian equity markets also posted gains. Hong Kong's Hang Seng Index rose 0.9%, Japan's Nikkei 225 added 0.1%, the ASX 200 gained 0.28%, and South Korea's Kospi advanced 0.7%. Conversely, gold prices declined sharply as demand for safe-haven assets eased. Spot gold fell 1.4% to $3,279 per ounce, marking its lowest level since 5 May. Meanwhile, haven currencies, including the euro, the Japanese yen, and the Swiss franc, weakened further against the US dollar, falling to their lowest levels since 10 April. Uncertainty remains as investors await further information regarding the trade discussions between the world's two largest economies. 'Greater clarity on these matters, to provide firm backing to the apparent more conciliatory tone of rhetoric seen from both sides, will be needed to give markets additional confidence that the peak of trade uncertainty and tit-for-tat tariffs is indeed in the rear-view mirror, and to unlock the door to a more durable and sustainable firming in risk appetite,' wrote Michael Brown, a senior research strategist at Pepperstone Group in London. 'For the time being, however, given the prevailing uncertainty, I'm inclined to fade this strength in the dollar and equities — at least in the short term,' he added. The S&P 500 has rebounded nearly 10% since US President Donald Trump indicated a substantial cut to tariffs on China in late April. Nonetheless, the benchmark index remains negative year-to-date, down 3.8%. Meanwhile, the US dollar index (DXY) has dropped more than 7% this year, despite the recent rebound. According to Bloomberg, the US is considering reducing tariffs on Chinese goods to below 60% as a first step, while seeking to negotiate the removal of Chinese restrictions on rare earth exports to the US. In early April, Beijing announced export restrictions on a wide range of critical minerals — including germanium, gallium, antimony, and magnets — potentially disrupting production in American electric vehicles and other electronic devices.
Euronews
05-05-2025
- Business
- Euronews
Personal income tax rates in Europe: Where do workers pay the highest and lowest taxes?
ADVERTISEMENT In Europe, how much of your gross salary do you actually pay in taxes? It depends on several factors such as your income level, whether you're part of a dual-earner couple, and whether you have dependent children. The OECD's Taxing Wages 2025 report breaks down tax rates using several indicators. Euronews focuses on income tax as a share of gross wage earnings. This shows how much of your salary goes to income tax. Social security contributions are not included in this calculation. Single person without children Among the 27 countries covered in the report — including 22 EU members, the UK, three EFTA countries, and Turkey — income tax as a percentage of gross wage earnings for a single person without children in 2024 ranged from 6.2% in Poland to 35.7% in Denmark. These figures apply to individuals earning 100% of the average wage in their respective countries. If a person earns more or less than the average, their income tax also changes — as we explore below. Among Europe's top five economies, Italy had the highest income tax rate at 20.9%. The others clustered around 16%: Germany and France (both 16.7%), Spain (16%), and the UK (15.5%). Income tax rates are generally higher in the Nordic countries. With the exception of Sweden (16.1%), all had rates around 20% or higher. Similar rates were also observed in Belgium and Ireland. In addition to Poland, five other countries had income tax rates of 12% or below: Slovenia, Greece, Switzerland, Slovakia, and Czechia. One-earner couple with two children For one-earner couples with two dependent children, income tax ranged from -12.8% in Slovakia to 32% in Denmark. Germany also recorded a negative rate of -0.1%, placing both countries in the refund category. A negative tax rate shows that taxes were refunded rather than deducted. This refund is mostly separate from standard family allowances. The top four countries with the highest income tax rates in this category were all Nordic nations. Sweden also exceeded both the OECD and EU-22 averages. Among Europe's five largest economies, income tax rates for one-earner couples with two children were significantly lower in France and Spain compared to single individuals without children — dropping from around 16% to approximately 10% in both countries. Income tax rates were also below 5% in Switzerland, Slovenia, Portugal, Czechia, and Poland. Two-earner couple with two children For two-earner couples with two children, income tax rates ranged from 1.6% in Slovakia to 35.7% in Denmark. This table makes it easy to see how income tax varies based on the number of earners in a household and the presence of children, reflecting each country's tax policy. Generally, single individuals without children pay the highest income tax. There isn't a single country where they pay less than either of the two household types with children. ADVERTISEMENT However, in several countries, the income tax rate is the same across all three household types. These include Estonia, Finland, Greece, Lithuania, Norway, Sweden, Turkey, and the UK. On the other hand, this does not mean that take-home pay ratios are also the same. Social security contributions and family allowances create differences in overall net income. Key trends in personal income tax across Europe Denmark has the highest income tax burden across all household types. Belgium and Iceland also report relatively high tax levels, particularly for single individuals. Slovakia and Germany show unusual patterns, with negative income tax rates for one-earner couples with children. Slovakia's strong negative rate reflects a policy aimed at supporting families. Poland and Czechia are among the countries with the lowest income tax rates across all three options. Nordic countries consistently have the highest taxes regardless of household type. Western Europe follows, with moderately high rates, especially for single earners. Eastern European countries tend to have the lowest income tax levels overall. Income tax increases with income level To examine how income tax rates vary by income level, we focus on single individuals without children. This comparison includes three income levels: 67% of the average wage in each country 100% of the average wage 167% of the average wage Among the 27 countries analysed, all except Hungary show a progressive tax structure — where income tax rates rise as income increases. ADVERTISEMENT For instance, in the EU — which includes 22 member states in the report — the average income tax rates for these three income levels were 12.1%, 17.2%, and 23.1%, respectively. When comparing those earning 100% of the average wage to those earning 167%, Sweden shows the highest increase in income tax — a 78% jump, rising from 16.1% to 28.7%. The increase was also above 50% in the Netherlands, the UK, Poland, Germany, Greece, Portugal, and Austria. In contrast, the smallest increases—below 10%—were recorded in Estonia, Lithuania, and Latvia, with no change in Hungary. ADVERTISEMENT
