Total Tax Revenue
The United States raises less tax revenue as a percentage of
gross domestic product (GDP) than most other countries in the Organization for
Economic Co-operation and Development (OECD). In 2003, taxes in the United
States, including all levels of government, amounted to 25.6 percent of GDP,
compared with 33.9 percent for other countries in the Group of 7 (G7) and 34.7
percent for non-G7 OECD countries. The United States raises more personal
income tax and property tax as a share of GDP than other OECD countries, but
less corporate income tax, Social Security contributions, and taxes on goods
and services.
US taxes are low
relative to those in other developed countries. In 2014, US taxes at all levels
of government represented 26 percent of GDP, compared with an average of 34
percent of GDP for the 34 member countries of the Organisation for Economic
Co-operation and Development (OECD). Among OECD countries, only Korea, Chile, Mexico collected less
than the United States as a percentage of GDP. In many European countries,
taxes exceeded 40 percent of GDP. But those countries generally provide more
extensive government services than the United States does.
Composition of Tax Revenue
1.Income and Profits Taxes:
Taxes on personal income and business
profits made up 48 percent of US tax revenue in 2014, a higher percentage than
in most other OECD countries, where such taxes averaged 34 percent of the total
(figure 2). Australia, Denmark, and New Zealand topped the United States in
this category, generating just over half of their total revenue from such
taxes. In the United States, personal income taxes alone generated 30 percent
of total tax revenue compared with 25 percent on average within the OECD.
2.Social Security Contributions:
The United States collects relatively less revenue dedicated
to retirement, disability, and other social security programs—24 percent of
total tax revenue—than the 26 percent OECD average. Some countries were well
above that average: the Slovak and Czech Republics, Slovenia, the Netherlands,
and Japan all collected more than 40 percent of their revenue from that source.
3.Property Taxes:
Property taxes provided almost twice as large a share of US
tax revenue—11 percent in 2014—than the OECD average of 6 percent. Almost all
revenue from taxes on property in the United States is collected by state and
local governments.
4.Goods and Services Taxes:
The
United States relies less on taxes on goods and services (including both
general consumption taxes and taxes on specific goods and services) than any
other OECD country, collecting 17 percent of tax revenue this way compared with
33 percent for the OECD. The value-added tax (VAT)—a type of general
consumption tax collected in stages—is the main source of consumption tax
revenue, employed worldwide in 160 countries including all 34 OECD member
countries except the United States. Most consumption tax revenue in the United
States is collected by state and local governments.
reference from:
www.taxpolicycenter.org/briefing-book/how-do-us-taxes-compare-internationally
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