June 30, 2011Contact: Steve Wamhoff (202) 299-1066 x33
U.S. Is One of the Least TaxedDeveloped Countries
Revenue Increase the Obvious Answer to Deficit Impasse
Some members of Congress are threatening to allow the U.S. to default on its debt obligations— and send financial markets into a tailspin — unless the President agrees to large, sudden cutsin the budget deficit
any increase intax revenue. But the most recent data fromthe Organization for Economic Cooperationand Development (OECD), the Office of Management and Budget and the CensusBureau reveal that the U.S. is already one of the least taxed countries in the developed world. Only two OECD countries have lowertaxes as a share of gross domestic product(GDP) than the United States.
Overall, U.S. Taxes Are Third-Lowest AmongOECD Nations
In 2009, total federal, state and local taxesin the United States were 22.6 percent of ourgross domestic product, ranking 26
amongthe 28 OECD countries for which data areavailable. Only Chile (18.2 percent) andMexico (17.5 percent) had lower taxes.
In 2009, total taxes in the 25 OECD nations with higher taxes than ours ranged from 24.6percent of GDP in Turkey to 48.2 percent inDenmark.
In most cases, the difference in tax levelsbetween the U.S. and OECD countries is noteven close. Of the 25 OECD nations withtaxes higher than ours, 22 of them have taxesthat are at least 25 percent higher, and 15have taxes at least 50 percent higher.
Citizens forTax Justice
Total 2009 Taxes as a % of GDP
M exicoChileUnited StatesTurkeyKoreaIrelandSlovak RepublicGreeceSwitzerlandSpainNew ZealandCanadaIsraelIcelandUnited KingdomCzech RepublicGermanyLuxembourgSloveniaHungaryNorwayFranceAustriaFinlandBelgiumItalySwedenDenmark