to the Organisation for Economic Development (OECD), tax
burdens are rising in most Western nations with rising
economic growth fuelling tax revenues. Higher growth has
led to higher corporate and personal taxes, in its latest
Annual Revenues Statistics Report.
OECD says tax revenues, as a percentage of gross domestic
product (GDP), had increased during 2005 in 17 of the
24 developed countries that form the OECD. Of the remaining
seven, five countries saw their tax burden fall in 2005,
led by Hungary, whose tax revenues as a proportion of
GDP fell one percentage point to 37.1 per cent.
had the biggest rise, up 3.7 points to 42 per cent, followed
by the US, up 1.3 points to 27, and the UK, up 1.2 to
37 per cent. The report also said that tax revenues across
the 24 countries had been boosted by improvements in tax
income tax rates staying level in all three nations, the
OECD put the rises down to stronger economic growth.
growth increases both the profitability of companies
and the level of personal incomes, leading to an increase
in the level of taxes they pay," said the report.