Just about every income earner has, at some time, felt they were overtaxed, or that his or her nation must be one of the most heavily-taxed countries in the world.
In a study conducted by the Organization for Economic Co-Operation and Development, Canada ranked 20th overall with its total tax revenues coming in at 31.1 per cent of GDP in 2009, the most recent year for which data is available.
Here is a list of the eight top-taxed countries as a percentage of GDP.
8) Norway
Tax revenues as a percentage of GDP: 41.0%
Why taxes are so high there: Norway supports a strong social safety net and finances a generous welfare program. It also is involved in many business ventures which increase its spending needs and tax revenues.
7) France
Tax revenues as a percentage of GDP: 41.9%
Why taxes are so high there: Traditionally, France’s government has had a large hand in business and commerce in the country with many semi-private ventures. Although the government has now implemented austerity measures to right its economy, including shedding many of its public institutions, a significant amount of government revenue is still spent in business ventures.
6) Austria
Tax revenues as a percentage of GDP: 42.8%
Why taxes are so high there: Austria places a large amount of its tax burden on individuals with a top tax rate of 50 per cent while keeping corporate taxes low to stimulate business growth. The country’s strong infrastructure and standard of living is financed and supported through government revenues.
5) Finland
Tax revenues as a percentage of GDP: 43.1%
Why taxes are so high there: Finland has high-quality, but expensive, healthcare and social security systems. The Finnish government also spends a lot on the country’s education system, which is considered one of the best in Europe.
4) Belgium
Tax revenues as a percentage of GDP: 43.2%
Why taxes are so high there: As a country with a constitution that guarantees “the right to health,” Belgium has an especially costly health care system to maintain. The government bears the bulk of the cost, with Belgian citizens paying only a small fee for care. Belgium also needs high tax revenues to keep up with its expenditures on infrastructure and industry subsidies.
3) Italy
Tax revenues as a percentage of GDP: 43.5%
Why taxes there are so high: Italy spends a lot on social services. Pension payments are 14 per cent of GDP, which is the highest percentage in the OECD. Look for tax revenues as a percentage of GDP to climb even further in Italy as the government raises taxes to help balance the country’s budget and reduce its crushing debt burden.
2) Sweden
Tax revenues as a percentage of GDP: 46.4%
Why taxes there are so high: Like most European countries, Sweden is very big on social services like heavily subsidized healthcare for all citizens, fully financed education starting at age six and a guaranteed basic pension for all elderly citizens. Sweden’s tax collection system is known for being extremely simple, with annual filing often consisting of nothing more than a text message to the Swedish Tax Agency.
1) Denmark
Tax revenues as a percentage of GDP: 48.2%
Why taxes there are so high: A big reason is the public sector is one of the world’s largest, employing 30 per cent of Denmark’s full-time workers. By contrast, only about 24 per cent of Canadian workers are in the public sector. A large public sector requires much higher tax revenues to maintain it.
In a study conducted by the Organization for Economic Co-Operation and Development, Canada ranked 20th overall with its total tax revenues coming in at 31.1 per cent of GDP in 2009, the most recent year for which data is available.
Here is a list of the eight top-taxed countries as a percentage of GDP.
8) Norway
Tax revenues as a percentage of GDP: 41.0%
Why taxes are so high there: Norway supports a strong social safety net and finances a generous welfare program. It also is involved in many business ventures which increase its spending needs and tax revenues.
7) France
Tax revenues as a percentage of GDP: 41.9%
Why taxes are so high there: Traditionally, France’s government has had a large hand in business and commerce in the country with many semi-private ventures. Although the government has now implemented austerity measures to right its economy, including shedding many of its public institutions, a significant amount of government revenue is still spent in business ventures.
6) Austria
Tax revenues as a percentage of GDP: 42.8%
Why taxes are so high there: Austria places a large amount of its tax burden on individuals with a top tax rate of 50 per cent while keeping corporate taxes low to stimulate business growth. The country’s strong infrastructure and standard of living is financed and supported through government revenues.
5) Finland
Tax revenues as a percentage of GDP: 43.1%
Why taxes are so high there: Finland has high-quality, but expensive, healthcare and social security systems. The Finnish government also spends a lot on the country’s education system, which is considered one of the best in Europe.
4) Belgium
Tax revenues as a percentage of GDP: 43.2%
Why taxes are so high there: As a country with a constitution that guarantees “the right to health,” Belgium has an especially costly health care system to maintain. The government bears the bulk of the cost, with Belgian citizens paying only a small fee for care. Belgium also needs high tax revenues to keep up with its expenditures on infrastructure and industry subsidies.
3) Italy
Tax revenues as a percentage of GDP: 43.5%
Why taxes there are so high: Italy spends a lot on social services. Pension payments are 14 per cent of GDP, which is the highest percentage in the OECD. Look for tax revenues as a percentage of GDP to climb even further in Italy as the government raises taxes to help balance the country’s budget and reduce its crushing debt burden.
2) Sweden
Tax revenues as a percentage of GDP: 46.4%
Why taxes there are so high: Like most European countries, Sweden is very big on social services like heavily subsidized healthcare for all citizens, fully financed education starting at age six and a guaranteed basic pension for all elderly citizens. Sweden’s tax collection system is known for being extremely simple, with annual filing often consisting of nothing more than a text message to the Swedish Tax Agency.
1) Denmark
Tax revenues as a percentage of GDP: 48.2%
Why taxes there are so high: A big reason is the public sector is one of the world’s largest, employing 30 per cent of Denmark’s full-time workers. By contrast, only about 24 per cent of Canadian workers are in the public sector. A large public sector requires much higher tax revenues to maintain it.
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