The OECD reports Tax Revenues Rise.
The 2018 edition of the OECD’s annual Revenue Statistics publication shows that the OECD average tax-to-GDP ratio rose slightly in 2017, to 34.2%, compared to 34.0% in 2016. The OECD average is now higher than at any previous point, including its earlier peaks of 33.8% in 2000 and 33.6% in 2007.
France Overtakes Denmark
The tax collection blue ribbon now goes to France. Congratulations!
Vs the OECD average of 34.2%, French taxes amount to 46.2% of GDP. Denmark, Sweden, Italy, and Greece round out the top five.
In addition to the blue ribbon, what else does France get?
Riots
Amusingly, it was a promise delivered: Macron Promised a Revolution, He Got One, Against Himself
In response, I offer this bit of political advice: Politicians Beware: It’s Best Not to Deliver What You Actually Promise.
How Did This All Start?
Good question.
Macron raised diesel taxes to pay for the global warming reduction effort that he campaigned for.
Where Are We Now?
That’s another good question.
In response to the riots, please note: France Suspends Diesel Tax Hike.
Musical Tribute
I am certain readers would like a fitting musical tribute to these events. I posted this before but who can resist another Beatles tribute?
Comment of the Day
Comment of the day from my blog
“A bunch of rich people get together and decide that they need to fight climate change. They decide the best way to achieve this is by taxing poor people. Utter shock when the poor people start rioting.”
— Mike “Mish” Shedlock (@MishGEA) December 4, 2018
You say you want a revolution. Well, you know. We all want to change the world.
Mike “Mish” Shedlock
Wouldn’t government spending as a percentage of GDP be a better measure ? The problem with using taxes is it doesn’t take into account deficit spending.
And the one most widely used is government debt as percentage of GDP. These are 2015 numbers. These will get worse once GDP starts falling. The experiment on the far right is Japan. The top 4 all made promises they couldn’t keep. Japan is trying to monetize its way out. Portugal, Italy and Greece will be affected once the EU stops QE in 2019. Then the real problems will begin in earnest.
I agree. The data is meaningless. To equalize US you would have to add health care burden on GDP born by private individuals, probably 12% of GDP, then all non tax “fees” that we bear such as tolls, surcharges, auto registration charges and on and on. Then you would have to compare government benefits that get returned to the private sector and US would come off much worse there. Then you have to compare the value of how dollars are spent. US wastes massive amount on military that could go to something constructive. So fuck these kinds of worthless comparisons.
If you add in what what middle class Americans pay for health care insurance and college education, you will have better comparable figures. Of course it is impossible to really generate comparable figures (think of Montreal where they spend a lot on snow removal, or Miami, where they have to pump out the sea water, etc.), but without taking into account what you get in return, comparisons are silly propaganda. Private or public insurance, garbage removal, home care, etcetc? Of course Americans get back the glory of their national security wars and intel community subversion of democracy and the “free” press.
I would personally much rather live in a low tax place where I keep more of my money and decide what do with my money. Versus the Gov’t taking a much bigger chunk and them deciding what to do with it. Even if that meant education and health care being more.
My wife has relatives in France. One sisters family had a single wage earner who retired after 20 years. Apparently in France, it’s normal to retire after working for 20 years and citizens think it’s their right to retire after 20 years. Their son came to the US to go to college because he couldn’t get into a french college. I had to help pay for his college since his dad was retired, After graduation, he had to go back to France because surprisingly it’s near impossible to find a good job in the US if you majored in something worthless and no one can understand your English.
Another sister got a free 3 bedroom apartment and was paid to take care of her mother. Taking care of a parent is a job in France and the government will pay you a salary to do so and give you a free place to live. Her mom passed and the government decided that a 3 BD apartment was too big for one person so they tried to move her to a smaller apartment. Which was also free. She refused to move. I’m not sure what happened.
All her relatives call us after 9 PM EST, which is after 3 AM in France. I guess if you don’t have to wake up and go to work, you can make phone calls at 3 AM.
Don’t tell the supply-sider extremist, but since 1990 France’s GDP outgrew lower-taxed Germany, and Germany’s GDP outgrew lower-taxed Japan.
Are there also equivalent figures for public spending as % of GDP?
“shot heard around the world”
On charts of taxes as a percentage go GDP like the one in this post, does the US percentage include state and local taxes or only Federal taxes? Thanks.
I think they harmonize everything. French pay real estate taxes, VAT, income taxes, corporate taxes. But I have to check with OECD.
Thank you! That makes sense if it is harmonized. It would also highlight why moving to a low tax state can really help in the US while you can’t escape much in other countries.
At what point, between 1% and 100% taxation, does a person become a slave?
50%. At that point more of your labor starts to go to someone else.
At the exact point when you are forced to pay more than you would pay voluntarily.