The Organisation for Economic Co-operation and Development (OECD) garnered headlines with its revenue statistics indicating that the United States has one of the lowest overall tax burdens at 26 percent of GDP, ranking the U.S. 31st among the OECD’s 35 member nations. But according to Scott Hodge at The Tax Foundation, focusing on this single statistic can be misleading.
How a country raises tax revenues is often much more telling than how much its tax system actually raises. By looking deeper in the report, readers can
see that the U.S. is overly reliant on what OECD economists identify as the two most harmful taxes for economic growth, corporate and personal income
taxes. IRS data further shows that the U.S. income tax system is highly progressive and attempts to collect the majority of tax revenues from a shrinking
number of taxpayers. Hodge states this is neither equitable nor economically intelligent.
Learn more at The Tax Foundation.
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