Europe on the Brink: How the Cost of Living Crisis is Forcing a Single, Devastating Tax on its Citizens
The Financial Burden of Being Single: How Tax Rates and Living Costs Affect Solo Households
When it comes to household expenses, singles often bear the brunt of higher costs. Utilities like water and electricity bills, which are often flat rates, can be more expensive for solo households. Entertainment costs, such as television and streaming services like Netflix and Amazon Prime, also tend to be higher.
According to Ocean Finance, single people pay around £200 more per month on bills, including housing, compared to those who share costs with another adult. Additionally, singles spend around £15 more on food and alcohol, £39.50 more on holidays, and £26.40 more on memberships.
While singles may find ways to reduce rent and cut back on grocery costs, higher taxes can be a significant burden. In the UK, for example, the marriage allowance can cut a couple’s tax bill by around £1,000.
The Organisation for Economic Co-operation and Development (OECD) reports that in 2022, the tax rate for single workers without children in Belgium was around 53.0%, compared to 47.8% in Germany and 46.8% in Austria. France taxed single workers without children at 47.0%, while Italy imposed a tax rate of 45.9%.
In contrast, the average tax rate for married workers with two children in Belgium was 37.8% in 2022, with Germany taxing them at 32.9% and Austria at 30.2%. France taxed them at 39.2%, while Italy was 34.9%.
As of January 1, 2023, Belgium had 1.8 million one-person households, accounting for over 36% of households. During the pandemic, the number of these households increased by about 22%.
Belgian politician Carla Dehonghe has denounced social discrimination against childless singles, particularly when it comes to taxes. Dehonghe advocates for more lifestyle-neutral tax policies, stating that “many people end up being lonely due to changing circumstances. There is no age limit for living alone. The group of single people is very diverse: single people, divorced people, widows and widowers, single-parent families, etc.”
Dehonghe notes that the classic two-parent, two-child family remains the norm in the eyes of policymakers, leading to adverse measures for singles in terms of taxes, housing, and more. Additionally, singles without children do not have the option to leave an inheritance to children or a spouse, which is often the most beneficial inheritance tax scenario.
To address these issues, Dehonghe has proposed changes in her city, Woluwe-Saint-Pierre, including new housing with communal spaces for singles to socialize, restaurants with communal tables, and invitations to city events for individuals and their friends.
