They suggest that the regressive impact of consumption taxes - as measured by the difference in the implicit consumption tax rate for those at 167% of average earnings and those at 67% - is higher in the European countries than in the other OECD countries, due to higher consumption tax rates (Figure ll).34 Warren (2008) also found a higher regressivity of consumption taxes -measured as the contribution to the Gini coefficient - in Denmark, Finland, Hungary, Norway and Sweden and the lowest regressivity in Japan and the United States. Thus, omitting consumption taxes affects estimates of redistribution achieved through the tax and transfer system, as well as how they differ across countries and evolve over time. Estimated tax payments are then divided by net income (i.e. gross earnings minus personal income tax and employees’ social security contributions plus family benefits).