France Tops OECD Table as Most Taxed Country

WSJ via Stephen Green:

The Organization for Economic Cooperation and Development’s annual review of taxes in its 36 members published on Wednesday showed the French government’s tax revenues were the equivalent of 46.2% of economic output, up from 45.5% in 2016 and 43.4% in 2000. The Danish government’s tax take, which was the highest among OECD members between 2002 and 2016, fell to 46% of gross domestic product from 46.2% in the previous year and 46.9% in 2000.

The U.S. government’s tax revenues also rose relative to the size of the economy as a result of a one-off tax on accumulated profits earned by American businesses overseas. But at 27.1% of GDP, only five countries had a lower tax take: Mexico, Turkey, Chile, South Korea and Ireland.

This is misleading. Taxes may be lower but the real burden is government spending because the spending must be paid for out of taxes eventually. So if tax rates are low but budget deficits continue, that excess spending must be paid for in the future. What good is that? It helps politicians now because they don’t have to raise taxes now or cut spending now. Its still socialism.

 

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