10/31/07

Taxes, taxes, and more taxes

Sweden's government collected the highest share of national income of all rich countries, with neighbouring Denmark a close second, according to figures from 2006. In general, government claims a bigger slice of national income than a generation ago, says the OECD. The tax burden in Europe in 2005 was above the OECD average of 36.2% of GDP, which itself had leapt up from 29.5% in 1975. Ireland, where the government claimed 31.7% of GDP, is a comparative tax haven, due partly to a light touch on companies. America paid less than 30% of its income in taxes. Mexico is the least-taxed country, taking 20.6% of GDP in 2006.

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