France became the highest-taxed of the rich countries of the world in 2017, according to figures published the day after President Emmanuel Macron encountered a fuel tax increase that ravaged much of the nation and triggered a grassroots protest movement against his government.
Organization for Economic Cooperation and Development The annual tax review in its 36 member published Wednesday showed that the French government’s tax revenue represented 46.2% of economic output, an increase from 45.5% in 201
6 and 43.4% year 2000 The Danish government’s tax recovery, which was highest among OECD members between 2002 and 2016, fell to 46% of gross domestic product from 46.2% the year before and 46.9% in 2000.
US tax revenues also increased in relative to the size of the economy as a result of a one-off tax on accumulated profits earned by US companies abroad. However, at 27.1% of GDP, only five countries had a lower tax rate: Mexico, Turkey, Chile, South Korea and Ireland.
For Tuesday’s climb, Mr. Macron’s government planned to raise fuel charges in an attempt to reduce car pollution.
Economists say that such consumption taxes that reduce contamination and other harmful effects are an effective way for government to raise income. But the planned flight had the worst riots to meet Paris for decades on Saturday, leaving the city’s shopping and tourist center dotted with burning cars and damaged shopping chores. Protests vandalized the Arc of Triumph, furious Mr Macron’s administration and the country.
The increase in French tax revenue was in line with a long-term trend over rich countries. The average tax rate of members of the organization went up to 34.2% of GDP 2017 from 34% 2016 and 33.8% in 2000, as governments continued their efforts to curb their budget gaps and limit debt as a result of the global financial crisis.
Of the 34 countries for which 2017 numbers are available 19, there was an increase in tax revenues in relation to their economy, with Israel reporting the largest increase. Mexico continued to record the lowest tax rate of 16.2% of GDP, down from 16.6% in 2016.
Write to Paul Hannon at [email protected]