Table 3: Tax measures—G7 Countries 1991/1992

G7 Countries

Marginal Tax Wedges (Percent)¹

High Income Marginal Tax Rate (Percent)²

Top Marginal Tax Rate (Percent)

Consumption Tax Rate (Percent)

Social Security Tax Rate (Percent)

United States

38.5

29.9

40-47

5.3

7.0

Japan

22.2

28.1

65

6.1

9.4

United Kingdom

50.4

40.0

40

17.1

6.3

Canada

55.1

51.7

44-54

12.4

6.0

Germany

63.8

n/a

57

18.6

15.0

Italy

62.0

41.1

67

15.4

13.3

France

66.1

22.5

51

19.0

19.4

¹OECD estimate published in The OECD Jobs Study. Measures after tax income of an average production worker as a percent of gross income plus employer paid payroll taxes.
²Marginal tax rate paid by one earner couple with two children earning 200 percent of the average production worker wage.
Sources: OECD (1994), The OECD Jobs Study: Evidence and Explanations (Paris: OECD, 1997); Revenue Statistics 1965-1996; J. Gwartney and R. Lawson, Economic Freedom of the World 1997, Annual Report, The Fraser Institute, Vancouver; United Nations, Human Development Report 1997 (Oxford: OUP, 1997), p. 13.