OECD confirms taxes are rising worldwide
Report finds higher taxes worldwide since 2005, with UK, US and Iceland topping the list
The tax burden on company profits and personal income has significantly risen
in most Western nations since 2005, according to a report released by the OECD.
When measured as a percentage of gross domestic product (GDP), tax in 17 of
the 24 countries it studied have increased.
The OECD’s annual Revenues Statistics report found that the higher tax ratios
are a result of stronger economic growth in these countries, with increased
profitability of companies and the high level of personal incomes most likely
leading to an increase in the level of taxes paid.
The report also found that tax revenues across the 24 countries have been
boosted by improvements to tax enforcement.
The biggest increases were in Iceland, where the tax burden rose by 3.7
percentage points to 42.4% of GDP, followed by the US (up 1.3 points to 26.8% of
GDP) and the UK (up 1.2 points to 37.2%). There were no increases in personal or
corporate tax rates in any of these countries.
The largest reduction in overall tax ratios was in Hungary (down one
percentage point to 37.1%).
The report concluded that the rises were due to ‘stronger growth increases
both the profitability of companies and the level of personal incomes, leading
to an increase in the level of taxes they pay.’