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No, I did not look at that picture; data is much more easy to handle in text format. I looked two days ago at Wikipedia [0], but primary source should actually
by ptaipale 12y ago
No, I did not look at that picture; data is much more easy to handle in text format. I looked two days ago at Wikipedia [0], but primary source should actually be Eurostat [1].
And you are of course right in that different countries have different systems, and numbers are not always directly comparable. A small difference is not necessarily significant, or there may be quite some difference in practice even if numbers are the same.
But if we look at those Eurostat numbers, what the paper says is Total revenue from taxes and compulsory social contributions - % of GDP so also for Portugal and Greece, those mandatory social security contributions of employer and employee are included as tax revenues in this comparison, like they are for Sweden.
What is significant is that the employment rate of people varies a lot in different countries; it is 73-74 % in Sweden, Netherlands and Germany, while it is below 50 % in Croatia and Greece.
It should also be noted that tax revenue to GDP is just a ratio, a number. It does not mean that taxes are a certain proportion of GDP, because a sum of all tax revenues is not a component of GDP.
Interestingly, in Portugal this ratio actually dropped from 33.2 % to 32.4 % between 2011-2012. Most countries were tightening taxes at that time. But since this number is ratio to GDP, if GDP increases and tax revenue stays the same, the ratio drops.
[0] http://en.wikipedia.org/w/index.php?title=List_of_countries_by_tax_revenue_as_percentage_of_GDP&oldid=645214116 http://en.wikipedia.org/w/index.php?title=List_of_countries_...
[1] http://ec.europa.eu/taxation_customs/resources/documents/taxation/gen_info/economic_analysis/tax_structures/2014/pr_92-2014_en.pdf http://ec.europa.eu/taxation_customs/resources/documents/tax...
- BSousa 12y agoHi! This is late but I seem to have missed your reply but didn't want not to reply to it :) In any case, you are probably right and it includes all taxes, including Social Security and the likes. I just find it odd, that at least on normal people's taxes (income tax + social security + VAT) the numbers don't add up. Maybe GDP in Portugal is generated a lot by non individuals (corporate, where tax is around a fixed 23%) and the income gap is quite large giving out those percentages? I know I'm on the top percentile tax wise, but my tax percentage, if we include VAT is close to 60% (I bill through my own company, so I'm responsible for all tax). When I was working for a third party circa 2010, it was around 45% or so. Not doubting your figures at all, they may even bring to light the actual problem which is, normal folks actually pay a lot of the countries taxes (so, not exactly lazy, which was my main point a few posts ago) but a lot of the elite is syphoning the money somehow. There is a reason our former prime minister is in jail (preventive, sorta like pre-bail) for corruption charges, like most of our politicians, they seem to be able to get very rich in short amount of time while having very small tax declarations.