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Discuss Question 18

18. FISCAL KNOWLEDGE: The U.S. has above average levels of taxation as compared to other major industrialized countries.

ANSWER: False – According to statistics for the Organization for Economic Cooperation and Development (OECD), which compare major industrialized countries, the U.S. has lower than average levels of taxation as a percentage of the economy. In 2009 (most recent year available), the U.S. had total tax revenue (federal, state, and local government combined) of approximately 24% of the U.S. economy (GDP). The average of all other OECD countries was approximately 34% of GDP.


7 Responses to “Discuss Question 18”

  1. Dennis says:

    I suppose you’re making a case for redistributing the wealth of the high achievers.
    The lower and middle class pay above average levels of tax (all categories mentioned) as compared to other countries — or are we excluding sales taxes, alcohol taxes, cigarette taxes and taxes paid through our rent payments.

  2. Mike says:

    I beg to differ with the answer to this question. If you add all state, local, school, sales taxes, usage,and property taxes to our current federal taxes, I am sure our percentage is much higher than other industrialized nations. I personally believe the above answer is very misleading as well as incorrect.

    • Warrior says:

      Agreed, it is more likely closer to 50%

    • Ron K. says:

      I agree with the point that Mike is making – the taxes for state (I’m in Minnesota and they are high) and all the other governmental bodies and taxing authorities, I believe the US is higher than this question contemplates. These are real dollars and our nation is underserved by an arbitrary bifurcation that pretends they don’t exist, matter or count.

  3. ken says:

    My guess is that this incorporates only those “taxes” that are actually called taxes. It does not take into account the hidden taxes that comes from inflation, or other manipulations by the federal reserve that are truly taxes, though not labeled as such.

  4. SMD says:

    Mike is Dead on Right! This does not include every single tax, fee, tariff, et al at every single level nor does it include govt, company & corporate markups for daily new regulations, costs that ALWAYS drop directly to the consumer. ALL costs of doing business pricing that is seperate of materials or profits are TAXES.

  5. Jim Joyce says:

    Statistical averages can muddy the waters. What is the sample? What data is included and what is omitted or discarded to get this outcome?

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