No one likes to pay taxes. On the other hand, we do like what taxes might offer, from infrastructure to school lunch programs to medical support and so on.
One of the studies that measures tax burdens is conducted by the Organization of Co-Operation and Development (OECD). It measures the tax revenue compared to economic activity or the tax-to-GDP ratio.
The study using 2017 and 2018 statistics shows the U.S. has the lowest tax burden compared to 36 other countries.
This was not the expected outcome. When President Trump signed a bill to lower corporate tax rates and lowered taxes on the wealthier Americans, the anticipation was the savings would go into economic growth thus creating more tax revenue.
While the U.S. GDP did grow, it was lower than anticipated. It was expected that companies would use because the “extra money” to invest in people, plants, and technology. Instead companies primarily bought their own shares back – to the tune of $806 billion!
The U.S. has the 32nd lowest tax burden out of 36. The most is France’s at 46.1%.