« Fjording the streams of consciousness | Main | The unhealthy fantasy life of conservatives »
November 07, 2004
Riddle me this
TaxProf Blog has an interesting post on the new OECD (Organisation for Economic Co-operation and Development) data on tax revenues as a percentage of GDP (Gross Domestic Product).
Here are the 5 highest tax countries:
Country..........Tax Revenue as % of GDP
1. Sweden.......50.8%
2. Denmark.....49.0%
3. Belgium.......45.8%
4. Finland.........44.9%
5. France..........44.2%Here are the 5 lowest tax countries:
Country..........Tax Revenue as % of GDP
1. Mexico............19.5%
2. U.S.................25.4%
3. Korea.............25.5%
4. Switzerland...29.8%
5. Ireland...........30.0%
Very interesting stuff. But, what does it really tell us? If it weren't for Mexico being ranked the lowest taxed (as a % of GDP) country, one might conclude that lower tax rates equal strong, wealthy economies. But... there is the pesky issue of Mexico being the lowest taxed country on the list.
The World Economic Forum also puts out an annual ranking: Global Competitiveness Report, which is a ranking of the world's most competitive economies. Here's what it shows us:
Country Rankings 2004-20051. Finland
2. USA
3. Sweden
4. Taiwan
5. Denmark
6. Norway
7. Singapore
8. Switzerland
9.Japan
10.Iceland
11.United Kingdom
12.Netherlands
13.Germany
14.Australia
15.Canada
16. UAE
Now this is interesting. Finland, the fourth highest taxed country on the OECD list is the single most competitive economy on the planet. Sweden, the very highest taxed country on the OECD data, is the third most competitive economy on the planet. Sandwiched inbetween is the good ol' U S of A, the second most competitive economy on the planet as well as the second lowest taxed as a percentage of GDP.
So, what are we to make of the incessant GOP calls for more and more tax cuts so that we can better compete in the global economy?
Enquiring minds want to know...
(Hat Tip to Rick Heller at Center Field)
Posted by Kevin at November 7, 2004 09:37 PM