Sweden tops tax league
The Local · 14 Oct 2005, 10:50
Published: 14 Oct 2005 10:50 GMT+02:00
Sweden is the only country where tax revenue accounts for more than half of gross domestic product. In 2004 50.7% of Sweden's GDP came from tax revenue, up slightly from 50.6% the year before.
The next highest among the 30 OECD countries was Denmark, whose tax revenue accounted for 49.6% of revenue (up from 48.3%), then Belgium at 45.6% (up from 45.4%).
The ratio of total tax revenues to gross domestic product is widely used as a measure of the level of state involvement in domestic economies. Thirty years ago, the ratio in Sweden was considerably lower, at 42%, but by 2000 it had reached an all-time high among OECD countries of 53.9%.
Mexico is at the opposite end of the spectrum to Sweden, with tax revenues accounting for only 18.5% of GDP. Second lowest is Korea (24.6%) and in third place is the United States (25.6%).