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nemein
10-12-05, 09:41 AM
Since this seems to be a frequent sub-topic around here I thought people would be interested in this

From CSM's enewsletter for 12 Oct
Denmark and Germany lead the world in dipping into the wallets of their
citizens, taking a combined 42 percent of personal income in taxes and
for social security, results of a recent survey show. The figure,
compiled by the Organization for Economic Cooperation and Development,
is based on 2003 figures and the amounts paid by single persons with
average earnings. In Germany, the split is 50-50 between income and
social security taxes, while in Denmark income is taxed at amost triple
the rate of social security. The countries with the largest personal
tax burdens, by percentage per capita:
Denmark 42%
Germany 42%
Belgium 41%
Netherlands 34%
Finland 31%
Sweden 31%
Poland 31%
Turkey 30%
Norway 29%
Austria 29%
Italy 27%
France 27%
Hungary 26%
Iceland 25%
Canada 25%
Australia 24%
Britain 24%
Czech Republic 24%
United States 24%

The report it is referencing
http://www.oecd.org/document/15/0,2340,en_2649_201185_35472591_1_1_1_1,00.html
12/10/2005 - The ways in which governments raise money through taxation continue to vary widely across the OECD, with Denmark collecting almost 60% of its revenues from personal and corporate taxes and France less than 25%, according to data in the latest edition of the OECD’s annual Revenue Statistics publication.

In North America, Mexico collects more than half of its tax revenue from taxes on the sales of goods and services while the United States raises less than a fifth of its revenue from this source (see Figure 1 and Table1). At regional and local level, different patterns are also visible. While most countries use a mix of state and local taxes to finance sub-national government, Ireland and the United Kingdom rely exclusively on local property taxes and Sweden exclusively on local income tax (see Figure 2).

Such differences reflect national choices with regard to taxation which in turn are determined by economic and social priorities. Revenue Statistics presents internationally comparable data on the tax revenues of OECD countries for all levels of government, enabling policy makers to compare a range of possible alternative models.

In 2004, the OECD publication reveals, Sweden once again had the highest tax-to-GDP ratio among OECD countries, at 50.7% against 50.6% in 2003. Denmark came next at 49.6% (48.3%), followed by Belgium at 45.6% (45.4%). At the other end of the scale, Mexico had the lowest tax-to-GDP ratio, at 18.5%, against 19.0% in 2003. Korea had the second lowest, at 24.6% (25.3%), and the United States had the third, at 25.4% (25.6%) (See Table 2).

The ratio of total tax revenues to gross domestic product at market prices is a widely used measure of the extent of state involvement in national economies. Countries with high tax-to-GDP ratios tend to pay more from the public purse for services that citizens would have to pay for themselves - or do without - in lower-taxed countries. However, comparisons are not always easy to make: for example, many countries with high tax-to-GDP ratios provide family benefits as cash payments rather than as tax reductions, increasing the apparent tax burden as measured by the tax-to-GDP ratio.

Taking the 30-nation OECD area as a whole, the tax-to-GDP ratio calculated on an unweighted average basis fell marginally in 2003 – the latest year for which complete figures are available -- to 36.3%, from 36.4% in 2002 and from a peak of 37.1% in 2000. In 1975, the average tax-to-GDP ratio was 30.3%. The Netherlands showed the biggest percentage-point reduction in the overall share of taxation in its economy, with the tax-to-GDP ratio falling two percentage points to 39.3% of GDP in 2004 from 41.3% in 1975. In Spain, by contrast, the tax-to-GDP ratio jumped by almost 17 percentage points from 18.2% in 1975 to 35.1% in 2004. (See Figure 3).

Recent changes in tax-to-GDP ratios in many countries have reflected the combined impact of changes in economic growth and lower rates of taxation on personal and corporate income. The OECD average corporate tax rate fell from 33.6% in 2000 to 29.8% in 2004, while the average top personal income tax rates fell from 47.1% to 44.0%. These resulted in marked falls in revenues between 2000 and 2002, when economic growth was sluggish, but a revival of economies in 2003 led to a recovery in revenues, thanks to the positive impact of growth on incomes and profits, and hence in the overall tax base.

Revenue Statistics is available for journalists through the OECD’s password-protected website or from OECD's Media Relations Division (tel. 33 1 45 24 97 00). For further comment, journalists should contact Christopher Heady, OECD’s Centre for Tax Policy and Administration (tel. 33 1 45 24 93 22).

Subscribers and readers at subscribing institutions can access the study via SourceOECD our online library. Non-subscribers will be able to purchase the study via our Online Bookshop.

http://www.oecd.org/dataoecd/18/23/35471773.pdf - Contains some graphs/tables w/ related data

classicman2
10-12-05, 09:46 AM
Obviously the U. S. has some catching up to do.

I'll make a suggestion of where to start if asked. ;)

Nazgul
10-12-05, 09:50 AM
I'll make a suggestion of where to start if asked. ;)

Booga-Booga?

al_bundy
10-12-05, 11:03 AM
what are the GDP growth rates of those countries?

DVD Polizei
10-12-05, 11:15 AM
The US does just about everything in their GDP's.

X
10-12-05, 11:44 AM
The US does just about everything in their GDP's.[mod warning] Do you think you could post anything half-relevant to threads instead of all these useless comments that are essentially threadcraps? [/mod warning]

bhk
10-12-05, 11:52 AM
Obviously the U. S. has some catching up to do.

Yes, we are far too wealthy and have too high a rate of creation of wealth. Let us raise taxes so that the people who sent $100 million worth of ice to Maine as part of Katrina relief efforts have more of our money to spend.

nemein
10-12-05, 12:03 PM
Obviously the U. S. has some catching up to do.

I'll make a suggestion of where to start if asked. ;)


:hscratch: We're in a 4 way tie for 1st, who do we have to "catch up" too...

kvrdave
10-12-05, 01:19 PM
what are the GDP growth rates of those countries?

Great question.

shifrbv
10-13-05, 01:51 PM
24% is pathetic considering the average person in the US doesn't receive squat for what they pay.

And as a total, 24% is conservative. I calculated my total tax bill including all the "hidden" taxes and it comes out closer to 30%.

I'd gladly pay 42% if I could get even remotely close to the services that they offer in those countries (healthcare and medicines, early retirement, old age pensions, and daycare, etc.)

Tracer Bullet
10-13-05, 02:09 PM
what are the GDP growth rates of those countries?

This came up in a cursory search:

http://www.worldfactsandfigures.com/gdp_country_growth_rate.php

Some interesting stuff there- the U.K. and Denmark have roughly the same rate, while the U.K.'s tax burden is the same as the U.S.'s but much lower than Denmark's, for instance. France's tax burden is 3% higher than Britain's but they have similar GDP growth rates.

X
10-13-05, 02:18 PM
This came up in a cursory search:

http://www.worldfactsandfigures.com/gdp_country_growth_rate.php

Some interesting stuff there- the U.K. and Denmark have roughly the same rate, while the U.K.'s tax burden is the same as the U.S.'s but much lower than Denmark's, for instance. France's tax burden is 3% higher than Britain's but they have similar GDP growth rates.I think you need some newer numbers to draw any conclusions. Those are very old numbers and circumstances have changed.

Tracer Bullet
10-13-05, 02:31 PM
I think you need some newer numbers to draw any conclusions. Those are very old numbers and circumstances have changed.

Thanks- that list was undated. This is one from 2004:

http://www.photius.com/rankings/economy/gdp_real_growth_rate_2004_0.html

A bit different. I do find it interesting that France's tax burden isn't much higher than America or Britain's and yet it's GDP growth rate is so much smaller.

X
10-13-05, 02:43 PM
I put the numbers together.

Country / Tax Rate / GDP Growth / Unemployment
Denmark 42% .30% 6.2%
Germany 42% -.10% 10.6%
Belgium 41% .80% 12.0%
Netherlands 34% -.70% 6.0%
Finland 31% 1.50% 8.9%
Sweden 31% 1.60% 5.6%
Poland 31% 3.60% 19.5%
Turkey 30% 5.00% 9.3%
Norway 29% .50% 4.3%
Austria 29% .80% 4.4%
Italy 27% .50% 8.6%
France 27% .10% 10.1%
Hungary 26% 2.80% 5.9%
Iceland 25% 2.60% 3.1%
Canada 25% 1.60% 7.0%
Australia 24% 2.80% 5.1%
Britain 24% 2.10% 4.8%
Czech Republic 24% 2.50% 10.6%
United States 24% 3.10% 4.9%

wendersfan
10-13-05, 03:53 PM
Wow, if there was only a country that combined high growth and low taxes.

Oh, wait... :D

DVD Polizei
10-13-05, 04:16 PM
I have a question. The article is saying Americans pay only 24% each year in taxes?

nemein
10-13-05, 04:33 PM
I put the numbers together. It would be nice to get unemployment stats included too.


This is the list from the 05 world fact book
http://en.wikipedia.org/wiki/List_of_countries_by_unemployment_rate

kvrdave
10-13-05, 04:43 PM
I have a question. The article is saying Americans pay only 24% each year in taxes?

That's an average. Many people don't pay any, and many even get money back. I think I read where the average NY resident pays closer to 50%

Ranger
10-13-05, 04:50 PM
Isn't the US still one of the few countries that tax dividend incomes?


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