MAJOR INDUSTRIAL COUNTRIES: THE SAVING RATE GAP

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~fE\ Directorate of
Intelligence
Major Industrial Countries:
The Saving Rate Gap
Confidential
GI 82-10070
April 1982
424
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Intelligence
The Saving Rate Gap
Major Industrial Countries:
Information available as of 26 March 1982
has been used in the preparation of this report.
This report was prepared by
of the Economics Division of the
Branch, Office of Global Issues,
may be addressed to Chief, Economic Analysis
Office of Global issues. Comments and questions
Confidential
GI 82-10070
April 1982
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Major Industrial Countries:
The Saving Rate Gap
Overview Japan continues to maintain the highest level of national savings among the
major industrial countries. The high Japanese saving rate is due almost
exclusively to exceptionally high savings by households. As a share of their
income, Japanese households save some one-third more than West Euro-
pean households and three times that of US households. This remarkable
saving performance has helped Japan finance its massive domestic invest-
ment effort, obtain and implement state-of-the-art technologies, and
finance a rather large central government budget deficit.
Except the United Kingdom, all of the major West European countries also
do considerably better than does the United States. West Germany,
France, and Italy each have achieved national saving rates more than
double that of the United States. These high savers have several character-
istics in common:
? Direct income tax burdens are generally lower than in the United States.
? Strong tax incentives are provided for income earned from savings.
? A large proportion of their populations is in the working and earning
ages.
Institutional factors also exert a strong influence over saving performances.
In Japan, the large proportion of salaries paid in semiannual bonuses and
low retirement benefits likely are factors boosting savings. In Western
Europe, the limited availability of consumer credit possibly stimulates
household savings.
A variety of factors indicate that the saving gap among the major
industrial countries will be narrower in the 1980s. For example, demo-
graphic trends will act to reduce Japan's saving rate and to boost saving in
Western Europe and North America. In addition, the United States and
the United Kingdom-the low savers of the group-have reduced direct
tax rates in an attempt to boost saving. Taken together, these factors
should reinforce the narrowing of national saving rate differentials that
occurred in the 1970s. Nevertheless, unless Tokyo takes further policy
actions designed to increase the proportion of incomes spent on consump-
tion, Japan will continue to allocate a larger share of resources to savings
and investment than any other Big Seven country. As a result, Japanese
firms likely will continue to have a financial edge in the acquisition of new
capital equipment and technologies.
Confidential
GI 82-10070
April 1982
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Major Industiral Countries:
The Savings Rate Gap
The Pattern of Saving Rates
Throughout the past two decades, saving rates dif-
fered widely among the major industrial economies.
Japan stood out among the group with national saving
equal to more than 20 percent of gross domestic
product (GDP), triple the rate of US saving (table 1).
In West Germany, France, Italy, and Canada.saving
rates averaged between 10 and 18 percent. Wide
differences also occurred in the sources of savings.
High household saving rates maintained Japan's lead
in this key economic variable; low household rates, on
the other hand, contributed significantly to the low
overall saving performances of the United States and
the United Kingdom (table 2).
In addition to the intercountry variation in saving
rates, pronounced shifts have occurred. Between the
ear:y and late 1970s, national saving rates declined in
six of the countries and rose slightly in Canada (figure
1). The decline was greatest in Japan:
? The sharp drop in Japan's national saving was due
to declines in government and corporate saving; the
rate of household saving actually rose.
? Household saving rates held steady in France and
Italy, but corporate and government saving fell
sharply.
? In the United Kingdom and Canada both household
and corporate saving rose, but the overall rate in
Britain was pulled down by a 8-percentage point
decline in government saving.
? In West Germany saving rates in all three sectors
fell during the 1970s; in the United States only
household saving declined.
' Throughout this paper, all saving rates are expressed as shares of
gross domestic product to allow ease of comparison; household
saving includes saving by nonprofit institutions serving households;
corporate saving is essentially retained earnings of corporations;
government saving is the difference between current receipts and
expenditures at all levels of government. Government saving differs
from the more familiar government budget deficit: surplus figures
by the amount of government investment. Investment is excluded
from saving but included in the deficit: surplus figures; as a result,
government saving figures are always more positive than the
comparable government budget figures. National Accounts of
OECD Countries 1962-79, Organization for Economic Cooperation
and Development, Paris, 1981, was the primary source for the data
Major Industrial Countries:
National Saving Rates a
United States
8.7
6.0
Japan
21.4
21.9
France
15.4
13.8
United Kingdom
10.5
8.5
Italy
16.0
13.1
a Combined savings of households, including nonprofit institutions
serving households, corporations, and government entities, expressed
as a share of GDP. Annual detail for these and other data in this pa-
per are presented in a statistical appendix.
Recent data indicate a continuation of these saving
patterns into 1980 and 1981. The OECD recorded a
decline in total saving in each of the major industrial
countries for 1980. Preliminary data for 1981 indicate
no change in household saving in Japan, West Ger-
many, France, Italy, and Canada and sharp declines
in the United States and the United Kingdom. The
UK decline continued despite two years of govern-
ment policies designed to raise saving.
Factors Behind the Differences
Numerous factors impinge on national saving rates.
Government savings are essentially determined by
policy decisions. Thus, as commitments to social
programs grew in the 1970s, and as slower real
economic growth increased the cost of these pro-
grams, governments shifted from net savers to ap-
proximate balance or dissaving. Private saving-that
done by households and corporations-is determined
by a much more diverse and complex set of factors.
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 Major Industrial Countries: Sources of National Saving, 1970-79 a
Total National
Saving
Households b
Corporations C
Governments d
United States
6.0
5.0
1.2
1.4
Japan
21.9
14.5
3.0
4.4
West Germany
14.0
8.7
2.0
3.3
France
13.8
9.9
1.2
2.7
United Kingdom
8.5
5.1
2.1.
1.4
Italy
13.1
18.8
-0.8
-5.0
Canada
10.7 a
5.9
5.0
1.4
a Because of rounding, components may not add to the totals shown.
b Includes nonprofit institutions serving households.
c Excludes capital consumption allowances.
d Excludes government investments and is therefore more positive
than government budget deficits which include them.
A large statistical discrepancy item prevents components from
adding to the total.
Nonetheless, a few key factors appear to account for
.much of the difference in national patterns. Some of
these factors are subject to the control of government
policy while others are not.
Taxation. It appears that the rate of direct taxation is
the major determinant of the differences in Big Seven
saving patterns. We estimate that for every 1-percent-
age point increase in direct tax rates private saving
rates dropped about I percentage point; the reaction
appears to be about the same in each country.' Based
on this calculation, Japan's lower direct taxes pushed
its saving rate some 5 percentage points above the
average. At the other extreme, high direct taxes in the
United States, West Germany, and the United King-
dom tended to lower their saving rates. In all of the
countries, the rise in taxes toward the end of the
1970s likely contributed to the general decline in
private saving
Significant variation exists in the rates of direct taxes.
During the 1970s the direct tax take from businesses
was relatively low, amounting to less than 5 percent of
' The analysis on which the quantitative estimates in this report is
based is available on request.
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GDP in all of the countries. Direct household and
social security taxes, however., varied widely (figures 2
and 3): '
? Only Japan had low household income and social
security taxes, with both tax. rates averaging under 7
percent of GDP in the 1970s.
? The United States, the United Kingdom, and Can-
ada had low social security taxes but high household
income taxes.
? France and Italy had low direct taxes on households
but high social security taxis.
? In West Germany, both household income and
social security taxes were relatively high.
In addition to differences in basic tax rates, most of
the non-US countries had in place numerous tax
breaks on income earned from savings (see accompa-
nying presentation.
Many governments with lower direct taxes make up
the loss of revenue through higher indirect taxes. Our
analysis indicates that, in general, they do so with
little adverse impact on saving rates. Indirect taxes do
collections of a given type relative to total GDP
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Major Industrial Countries: Trends in Saving Rates
, National saving
Household saving
20
Corporate saving
_
Government saving
10
II I1 I'I ICI
-10 -10
10
I I I I I I I I I I I
-10 1970 72 74 76 78 80
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Tax Breaks on Earnings From Savings
Japan. Through a variety of schemes, the Japanese
Government exempts from taxes virtually all interest
income earned by average Japanese citizens. This
includes interest on deposits of up to $13,300 in both
postal savings accounts and banks, interest on up to
$13,300 worth of government bonds, and interest on
as much as $2,000 held in an employee payroll
savings account. Thus a Japanese can theoretically
shield as much as $62,000 in savings from taxes on
interest income.
West Germany. The West German Government adds
a hefty bonus to special savings accounts that are
frozen for six or seven years and can take the form of
bank accounts, life insurance policies, building soci-
ety shares, and stocks and bonds. Any adult with a
taxable income of less than $13,700 ($27,400 for
couples) can deposit up to $475 a year in such an
account and earn, on top of interest, a tax-free bonus
of 14 percent a year plus 2 percent for each dependent
child. (Deposit and income ceilings are doubled for
married couples.) In addition, an employee can set up
another special seven-year account by authorizing
regular payroll deductions of up to $357 a year that
qualify for a government bonus of 30 to 40 percent
annually, depending on the size of his family. That is
not all. Individual interest income up to $460 a year
is tax free, and life insurance premiums are deduct-
ible from taxable incomes within certain limits.
France. The French Government allows all individ-
uals, including children, to earn tax-free interest of
7.5 percent on deposits of up to $10,840 in mutual
savings banks. Roughly $1,000 of income from gov-
ernment bonds is tax free under various incentive
schemes, and there is partial tax relief on other bond
interest, as well as complete tax relief on the first
$723 of dividend income from, stocks. The most
recent incentive scheme is the popular Monory law
(named after Finance Minister Rene Monory), which
was passed in 1978 and lets people deduct as much as
$1,205 a year for stock investments, provided the
shares are of French companies and are held at least
four years.
United Kingdom. To help protect the elderly against
the withering blast of inflation, Britain offers them a
retirement bond, which is indexed to the retail price
index and earns a bonus of 4 percent interest if held
for five years. Individuals can invest up to $2,800 in
such bonds. In addition, all adults can sign up for
special tax-free save-as-you-earn programs, under
which accounts are funded by regular contributions
or payroll deductions up to $47 a month. The
deposits are fully indexed against inflation if held for
five years, and the account earns a bonus of two
months' contributions if held for seven years.
Canada. Unlike the United States the Canadian
Government defers taxes on employee contributions
to employer-sponsored pension plans. It also defers
income taxes on Registered Retirement Savings
Plans, which are roughly comparable to Individual
Retirement Accounts in the United States but have
higher contribution limits and are available to all
workers. For a worker who is enrolled in both
programs, the limit on his annual tax-deferred contri-
butions is $3,500, or 20 percent of earnings, whichev-
er is less. If he is enrolled only in an RRSP, the limit
becomes $5,500, or 20 percent of earnings.
This presentation is based on Gene Koretz, "Com-
mentary/Economics," Business Week, 1 September
1980, p. 67
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Figure 2
Major Industrial Countries: Tax Rates, 1970-79
Household direct
United States
Japan
West Germany
France
United Kingdom
Italy
Canada
Socia9 Security
United States
Japan
West Germany
France
United Kingdom
Italy
Canada
I I I I I
0 5 10 15 20
I I I I I
2 5 10 15 20
not have a strong negative effect on savings of direct
income taxes chiefly because they are levied on
cons;.imption and therefore can be avoided, or at least
postponed, if a greater portion of income is put in
savings. Thus, one aspect of indirect taxes is to
increase the incentive to save
Demographic Factors. Demographic factors also help
explain national saving rates and are subject to little
policy control. Japan has saved as much as it has over
the past 20 years in part because it has had the
highest proportion of population in the primary work-
ing ages of 20 to 64 (figure 4). This age group, because
it is earning an income and is saving either to
purci2ase houses or for retirement, is the chief source
of household savings in the Japanese economy; older
and younger population groups generally dissave.
Other countries that received a boost to saving from
this factor were West Germany and Italy. At the
other extreme, US and French private saving, particu-
larly household, probably was reduced by the low
working-age to non-working-age population ratios of
the 1970s.
Economic Performance. Differences in long-term eco-
nomic performances as well as differential responses
to those performances also play important roles in
determining saving rates. Again, Japan's saving rate
was boosted by its exceptionally strong growth in real
incomes, which provided increased discretionary in-
come from which to save. Inflation and inflationary
expectations may also have affected saving rates.
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ContrlaleFtiffi6
Figure 3
Major Industrial Countries: Trends in Tax Rates
Legend:
Household direct
Indirect
Social Security
Business direct
10 ~~-
I I I I I I
0 0
_ ~1 I ~ I I ~ I ~ I
0 1970 72 74 76 78 80 0 1970 72 74 76 78 80
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Figure 4
Major Industrial Countries: Share of Working-
Age Populations
West Germany
Canada
United States
Italy
United Kingdom
France
I I I I I I I I I
Specifically, saving rates appeared to rise with infla-
tion in Canada, where widespread indexation to infla-
tion exists, and in West Germany, where the expecta-
tion of early return to low inflation likely played a
role. Acceleration of inflation seemed to lower saving
in most of the other countries, probably because
consumers responded by speeding up purchases to
beat price rises
Retirement Benefits. To the extent that individuals
save to ensure an adequate standard of living in
retirement years, differences in retirement benefits
across countries influence saving rates. Indeed, the
fact that Japan's retirement benefits have, until re-
cently, been the least generous likely is another reason
for its high saving rates (table 3). As recently as 1975,
the pension of a typical Japanese couple amounted to
only 35 percent of their preretirement earnings. Ex-
cept for Britain, all other countries' pension plans
replaced 50 percent or more of preretirement earn-
ings. Since 1975, the benefits of Japan's retirement
programs have increased dramatically.
Major Industrial Countries:
Income Replacement
by Retirement Benefits a
Percent of Preretirement Earnings
West Germany
France
United Kingdom
Italy
Canada
a From Leif Haanes-Olsen, "Earnings Replacement Rate of Old-
Age Benefits 1965-75; Selected Countries," Social Security Bulle-
Institutional Factors. Finally, institutional character-
istics likely create differences in saving behavior. The
influence of these factors is not clear, but they appear 25X1
to be strongest in favor of saving in Japan and
weakest in the United States.
Specific institutional factors at work in Japan include
a high ratio of house prices to income and an unusual-
ly long retirement period. Japan's house-price-to-
income ratio is the highest in the group, a fact that
forces a high rate of saving by younger Japanese. At
the same time, Japanese workers have to maintain
high rates of saving to obtain sufficient funds for
retirement years. As already discussed, Japan's pen-
sion system was among the least generous in the Big
Seven. In addition, the typical Japanese retirement
period is unusually extended because of a relatively
long average life span and an early retirement age.
The semiannual bonuses that are a major part of
Japanese wage payments also have been cited as a
factor in Japan's high saving rate.
The other basic institutional differences seem bound
up in consumer credit arrangements, chiefly a much
greater use of cash payments in Europe and Japan
than in the United States and Canada. Thus, outside
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of North America, where extensive consumer credit is
available, it is necessary to save up large down
payments to make purchases." Rapid increases in
social safety net programs, such as unemployment and
income maintenance schemes, also may have contrib-
uted to shifts in saving rates as households were able
to reduce precautionary savings in response to govern-
ment-provided floors under their earnings.
Saving in the 1980s:
Outlook and Implications
In the coming decade, saving rates likely will bottom
out from their declines of the 1970s and, in some
countries, may even rise. Several factors suggest this
outcome:
? Demographic trends will be generally favorable for
saving provided that the larger proportion of adults
are able to find employment. West Germany's
relative working-age population will rise by 7 per-
cent between 1979 and 1985, boosting its saving
rate by perhaps a percentage point. Increases in the
relative working-age population of France, Canada,
the United Kingdom, and the United States should
lead to rises in saving rates of about half a percent-
age point. Only in Japan will demographic trends
tend to lower saving over the next few years; there,
the proportion of the population in the working ages
will drop 1 percentage point by 1985.
? Government tax policies should also be more favor-
able for savings. There appears to be increased
recognition of the disincentive effects of direct taxes
on savings; the United States and the United King-
dom have begun lowering the burden of direct taxes
as an explicit assault on their low saving rates.
? Shifts in government-sponsored retirement benefits
also seem likely to increase private saving in the
1980s, or at least not discourage it; specifically, the
? It is possible that saving rates do not vary with consumer credit
availability. With tight credit, consumers have to save relatively
more prior to purchase; with easier credit, the purchase can be
made with less prior saving, but thereafter saving must be higher to
pay off the credit extended at time of purchase. In reality, saving
probably would nonetheless be higher in a tight-credit country
because saving would have to occur earlier, precautionary saving
would be higher to offset inability to obtain emergency credit, and a
"habit" of saving may be inculcated by the need to save in order to
make the first major purchases in a person's adult life.F___1
Major Industrial Countries:
Absolute Volume
of National Savings
1965
197
3
1980
United States
71.9
111.
6
130.2
Japan
26.4
126
.2
173.9
West Germany
44.5
82.
0
99.0
France
18.2
43
.5
68.4
United Kingdom
9.5
19
.1
34.3
Italy
6.9
14
.7
41.3
Canada
5.3
13
.6
26.5
a Coverted at 1980 exchange rates.
income replacement value of retirement benefits
probably will not increase by anywhere near the 40-
percent rise recorded in the 1970s.
? Finally, the declines in government saving should
bottom out, given the widespread concern about the
impact of government budget deficits on credit
markets
The actual saving trends of the 1970s and those
outlined as probable for the early 1980s indicate that
the gap between Japan's saving rate and those of
other Big Seven countries will probably be substan-
tially smaller. Nonetheless, Japan, by virtue of the
growth in its economy and its still-higher saving rate,
will amass an absolute volume of savings larger than
that of the United States and several times larger
than the other countries (table 4). Thus, despite a
decline in Japan's saving rate, Japanese firms should
continue to have a substantial advantage over foreign
competitors with regard to availability and cost of
investment capital. This lower cost of capital likely
will continue to accrue chiefly to Japanese firms, as
opposed to non-Japanese ones, as a result of the
restricted access of foreign firms to Japanese financial
markets.'
' A more detailed assessment of international differences in the cost
and availability of investment capital will be presented in a
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Appendix A
Major Industrial Countries:
Trends in Saving Rates
and Determinants, 1970-79
1970
1971
1972
1973
1974
1975
1976
1977
1978
1979
United
States
Japan
West
Germany
France
United
Kingdom
Italy
Canada
6.8
26.7
18.4
16.7
13.0
16.1
9.9
6.8
24.3
16.9
16.1
10.7
14.6
9.5
7.3
24.2
16.2
16.5
10.2
13.8
10.4
8.6
25.5
16.2
16.5
11.3
14.0
12.8
6.0
22.9
14.2
14.1
6.5
12.7
14.1
3.4
19.2
10.2
12.1
5.0
9.7
10.1
4.3
19.8
11.5
11.2
5.7
12.1
10.8
5.1
18.9
11.5
11.4
7.3
12.3
8.9
5.8
19.2
12.3
11.4
7.3
12.3
9.0
5.5
18.0
12.8
11.9
7.8
13.1
11.6
Table A-2 Percent of GDP
United Japan West France United Italy Canada
States Germany Kingdom
1970
5.6
11.6
8.6
9.4
4.0
17.1
3.7
1971
5.9
11.9
8.4
9.5
2.8
18.9
4.0
1972
4.8
12.3
9.3
9.6
4.3
20.2
4.9
1973
5.9
14.5
8.7
10.0
5.2
19.5
5.9
1974
5.5
17.1
9.4
10.1
6.4
18.0
6.7
1975
5.9
16.6
10.1
11.2
5.8
19.2
7.2
1976
4.5
16.9
8.7
9.3
5.0
18.5
6.5
1977
3.9
15.5
8.0
9.7
4.2
18.0
6.4
1978
3.8
15.2
7.9
10.5
5.7
19.6
6.8
1979
3.7
13.6
8.2
9.6
6.7
18.6
6.9
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United Japan West France United Italy Canada
States Germany Kingdom
1970
0.9
8.5
3.9
2.9
1.4
0.4
3.4
1971
1.4
5.6
3.0
2.6
2.2
-0.2
3.6
1972
2.1
5.9
2.2
2.8
3.4
-0.2
4.1
1973
1.5
4.2
1.4
2.7
4.3
0.2
5.6
1974
-0.2
-0.5
0.9
0.5
-0.9
-0.3
6.0
1975
0.7
-0.6
0.9
-0.2
-0.4
-2.4
4.0
1976
1.4
0.9
1.5
-0.9
1.7
-1.4
5.7
1977
1.7
1.1
1.2
0.1
3.4
-1.4
4.7
1978
1.5
2.6
2.4
0.6
3.2
-1.6
5.2
1979
0.8
2.0
2.6
0.9
2.2
-1.5
7.3
1970
1971
1972
1973
1974
1975
1977
1978
0.2
6.7
5.9
4.3
7.5
-1.4
3.0
-0.6
6.8
5.5
3.9
5.7
-4.1
2.6
0.5
6.0
4.7
4.0
2.5
-6.1
2.4
1.2
6.8
6.1
3.8
1.8
-5.7
3.2
0.7
6.3
4.0
3.6
1.0
-5.0
4.2
-3.2
3.2
-0.8
1.1
-0.4
-7.1
0.1
-0.5
2.3
2.3
1.6
-0.3
-4.3
-0.6
0.5
1.4
2.0
0.4
-1.7
-5.7
-1.2
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United Japan West France United Italy Canada
States Germany Kingdom
1970
11.3
4.4
9.5
1971
10.3
5.0
10.5
1972
11.4
5.2
10.3
1973
11.0
5.6
11.8
1974
11.7
6.0
12.5
1975
10.7
5.4
11.6
1976
11.2
5.5
12.2
1977
11.5
5.5
12.8
1978
12.0
5.2
12.1
1979
12.7
6.1
11.5
3.6 12.7
3.7 11.8
4.1 13.7
3.9 15.9
4.7 13.9
4.7 13.0
4.6 12.2
4.6 11.8
4.9 12.3
5.3 12.3
5.1 12.1
5.4 12.3
5.9 12.3
6.7 12.5
7.6 12.7
8.8 11.9
8.5 11.8
United
States
Japan
West
Germany
France
United
Kingdom
Italy
1970
3.5
4.2
1.2
2.1
3.4
1.3
1971
3.6
4.2
0.9
1.9
2.8
1.2
1972
3.6
3.8
0.9
1.9
2.5
1.4
1973
3.7
4.3
1.2
2.0
2.7
1.3
1974
3.7
5.5
1.1
2.8
3.6
1.1
1975
3.3
4.5
1.0
1.9
2.4
1.4
1976
3.8
3.9
1.2
2.2
1.9
1.7
1977
3.8
4.1
1.5
2.1
2.3
1.8
1978
4.0
4.4
1.6
1.7
2.5
2.1
1979
3.7
4.3
1.5
1.9
2.7
2.0
Canada
3.9
3.8
4.0
4.3
5.0
4.8
3.9
3.7
3.9
4.2
Approved For Release 2007/07/20: CIA-RDP83B00231 R000100160001-6
 Approved For Release 2007/07/20: CIA-RDP83B00231 R000100160001-6
Average Social Security Tax Rate
United
States
Japan
West
Germany
France
United
Kingdom
Italy
Canada
1970
6.0
4.3
10.9
12.9
5.2
10.7
2.9
1971
6.1
4.6
11.2
13.1
4.9
11.2
2.7
1972
6.3
4.7
11.7
13.2
5.3
11.1
2.8
1973
7.0
4.6
12.5
13.4
5.4
11.4
2.9
1974
7.4
5.2
12.9
14.0
6.0
11.7
3.3
1975
7.2
6.4
13.4
15.3
6.6
12.9
3.5
1976
7.4
6.4
14.0
15.8
6.8
12.7
3.7
1977
7.5
6.9
14.0
16.5
6.7
12.5
3.7
1978
7.8
6.8
14.0
16.6
6.2
12.5
3.6
1979
8.1
7.4
13.9
17.5
6.1
13.0
3.3
Table A-8
Average Indirect Tax Rate
Percent of GDP
United
States
Japan
West
Germany
France
United
Kingdom
Italy
Canada
1970
9.6
7.1
12.8
15.2
16.0
11.2
13.9
1971
9.7
7.1
12.8
14.9
14.9
10.9
13.7
1972
9.5
7.0
13.0
14.9
14.2
10.1
13.9
1973
9.2
7.0
12.9
14.8
13.5
9.8
13.4
1974
9.1
6.9
12.4
14.4
13.5
9.8
14.0
1975
9.1
6.6
12.3
14.0
13.2
8.7
12.9
1976
8.9
6.6
12.3
14.5
12.9
9.6
12.9
1977
8.7
7.0
12.4
13.8
13.8
10.3
12.9
1978
8.4
6.9
12.7
14.0
13.8
10.1
12.5
1979
8.1
7.4
12.8
14.4
15.7
9.5
12.3
Approved For Release 2007/07/20: CIA-RDP83B00231 R000100160001-6
 Approved For Release 2007/07/20: CIA-RDP83B00231 R000100160001-6
Confidential
United
States
Japan
West
Germany
France
United
Kingdom
Italy
1972
20.8
15.6
7.6
4.0
2.6
8.8
1973
6.3
7.1
22.5
1.0
9.2
4.0
1974
17.5
6.6
18.8
7.5
25.5
5.8
1975
-3.0
0
-8.3
2.2
21.2
8.3
1976
14.8
5.2
17.6
7.3
11.3
8.8
1977
12.9
4.9
19.1
5.8
3.1
10.8
1978
14.2
1.7
1.9
4.2
6.1
14.4
1979
16.6
15.1
4.5
3.7
6.6
6.6
Canada
11.7
10.3
11.8
10.4
11.6
11.6
4.3
9.3
United Japan West France United Italy Canada
States Germany Kingdom
1972 3.6 1.2 0.8 2.1 -0.6 3.6 5.5
1973 5.4 6.3 3.9 2.8 3.7 0.7 6.5
1974 3.5 11.8 -0.8 7.8 10.3 0.1 8.5
1975 -2.1 -5.1 -1.7 -4.7 -2.3 3.5 2.6
1976 8.3 -0.7 4.0 4.0 -0.6 2.9 -1.3
1977 4.6 5.8 6.1 1.5 5.0 2.1 0.8
1978 5.3 6.6 2.1 -0.9 4.0 4.1 6.2
1979 1.5 3.6 1.3 2.8 4.2 1.8 6.2
Approved For Release 2007/07/20: CIA-RDP83B00231 R000100160001-6
 Approved For Release 2007/07/20: CIA-RDP83B00231 R000100160001-6
Marginal Social Security Tax Rate
United
States
Japan
West
Germany
France
United
Kingdom
Italy
Canada
1971
7.7
7.5
13.9
15.3
2.7
16.6
1.7
1972
8.2
5.0
17.6
13.7
8.4
10.9
3.7
1973
13.4
4.5
19.5
14.7
6.3
12.7
2.9
1974
11.7
7.8
17.5
18.4
10.7
13.1
5.4
1975
5.7
18.7
24.4
24.5
8.6
22.2
5.8
1976
9.1
6.6
20.9
19.4
7.9
11.8
4.8
1977
8.5
10.6
14.9
22.0
5.8
11.4
3.1
1978
9.7
6.7
13.2
17.0
2.9
12.6
3.3
1979
10.8
13.6
12.9
24.3
5.6
15.1
1.3
Marginal Indirect Tax Rate
United
States
Japan
West
Germany
France
United
Kingdom
Italy
Canada
1971
11.7
6.9
12.1
12.0
5.8
7.4
11.1
1972
7.1
6.7
15.7
14.9
7.6
2.7
15.5
1973
6.9
7.0
11.7
14.3
8.8
7.9
10.7
1974
8.0
6.3
5.6
11.5
13.5
9.9
17.2
1975
8.9
3.5
9.6
11.5
11.9
0.6
3.2
1976
7.2
6.4
12.9
17.5
11.6
13.0
13.1
1977
7.1
10.9
14.0
8.4
19.3
13.4
12.5
1978
5.8
5.6
16.6
15.3
14.1
9.0
9.6
1979
4.8
13.9
14.3
17.3
27.7
6.6
10.2
Approved For Release 2007/07/20: CIA-RDP83B00231 R000100160001-6
 Approved For Release 2007/07/20: CIA-RDP83B00231 R000100160001-6
Confidential
Relative Working-Age Population Persons Aged 20 to 64
United Japan West France United Italy Canada
States Germany Kingdom
1970 52.5
1971 52.9
1972 53.4
1973 53.8
1974 54.2
1975 54.6
1976 55.1
1977 55.6
1978 56.1
1979 56.6
1970
1971
1972
1973
1974
1975
1976
1977
1978
1979
60.1
57.0
54.3
55.7
57.1
53.3
60.5
56.8
54.5
55.4
56.7
54.5
60.5
57.1
54.8
55.4
56.4
55.7
60.1
57.6
55.4
55.7
56.4
57.0
59.9
57.8
55.6
55.9
56.3
57.7
United Japan West France United Italy Canada
States Germany Kingdom
1.3 11.3
5.5 2.0
5.7 11.4
-3.8 -5.8
2.6 1.8
4.0 5.3
2.7 7.0
6.3
3.2
7.9
6.5
5.2
5.1
6.1
4.8
5.6
5.6
6.2
7.2
-0.5
-3.6
1.6
3.3
-2.5
-2.6
1.3
5.1
5.8
4.9
-1.5
-0.2
6.0
6.1
4.5
2.3
1.1
5.1
Approved For Release 2007/07/20: CIA-RDP83B00231 R000100160001-6
 Approved For Release 2007/07/20: CIA-RDP83B00231 R000100160001-6
United
States
1970 6.0
1971 4.3
1972 3.2
1973 6.2
1974 11.0
1975 9.2
1976 5.8
1977 6.4
1978 7.6
1979 11.2
Japan
West
Germany
France
United
Kingdom
Italy
Canada
7.6
3.3
5.3
6.3
5.0
3.4
6.0
5.4
5.2
9.0
5.0
2.8
4.5
5.5
6.1
7.6
5.7
4.7
11.8
6.9
7.4
9.1
10.8
7.7
24.3
7.0
13.7
16.0
19.1
10.8
11.8
5.9
11.9
24.2
17.0
10.9
9.4
4.5
9.6
15.8
16.5
7.5
8.1
3.7
9.4
16.0
19.3
8.0
4.2
2.7
9.1
9.0
12.4
9.0
3.5
4.1
10.6
13.4
15.6
9.1
Approved For Release 2007/07/20: CIA-RDP83B00231 R000100160001-6
 Confidentifti pproved For Release 2007/07/20: CIA-RDP83B00231 R000100160001-6
Confidential
Approved For Release 2007/07/20: CIA-RDP83B00231 R000100160001-6