In raising tax, the US was placed 31st out of the research body’s 35 members.
In raising tax, the US was placed 31st out of the research body’s 35 members.

OECD: US Bucking Trend as Others Hike Taxes

OECD: US Bucking Trend as Others Hike Taxes

The Organization for Economic Cooperation and Development says US revenues as a share of gross domestic product has recently fallen while the share of economic output taken by governments in developed economies as taxes has risen to its highest level since records began 50 years ago.
In the US, taxes as a share of gross domestic product fell in 2016 to below the level recorded in 2007, the year before the financial crisis hit and briefly reduced tax revenues for governments around the world, the Wall Street Journal cited the OECD as reporting, newsmax reported.
According to the OECD, “the US government—at national, state and local levels—raised the equivalent of 26.2% of GDP in taxes last year, placing it 31st out of the research body’s 35 members.” Only Turkey, Ireland, Chile and Mexico taxed less, the WSJ explained.
The OECD report comes as senate Republican leaders plan a make-or-break floor vote on their bill as soon as Thursday—a dramatic moment that will come only after a marathon debate that could go all night. Democrats are expected to try to delay or derail the measure, and the GOP must hold together at least 50 votes from its thin, 52-vote majority in order to prevail.
According to the congressional budget office, the proposed changes will amount to 0.6% of GDP over the coming decade.
The OECD also warned that rising private debt loads in both advanced and developing economies pose a risk to growth as Canada, South Korea and the UK lead the world in household borrowing, Bloomberg reported.
“Household and corporate debt in many advanced and emerging market economies is high,” the Organization for Economic Cooperation and Development said Thursday in a pre-released section of a report to be presented next week.
“While higher indebtedness does not necessarily imply that problems are just around the corner, it does increase vulnerability to shocks.”
With the global economy showing its most even expansion since the financial crisis, debt levels and credit quality are among the risks that could trigger a downturn. Consumer debt tops 100% of GDP in Canada, with South Korea and Britain both above 80%.
On corporate borrowing, the OECD warned about a shift in risk from banks to the bond market and a “substantial” decrease in credit quality.



Short URL : https://goo.gl/QoxHU7
  1. https://goo.gl/nqwghj
  • https://goo.gl/KrPzYq
  • https://goo.gl/GmBLXU
  • https://goo.gl/ef8jo5
  • https://goo.gl/xkotFn

You can also read ...

Philippines May Suspend Excise Taxes on Petroleum Products
The Philippine government will suspend the collection of...
Jordan Approves New IMF-Guided Tax Law
Jordan’s cabinet on Monday approved major IMF-guided proposals...
US, China are nearing a deal to remove American sales ban against ZTE.
US President Donald Trump retreated from imposing tariffs on...
Dubai Bank to Buy Turkey’s Denizbank for $3.2 Billion
Dubai’s biggest lender the National Bank of Dubai has agreed...
At present, the majority of investments are still being done in oil-gas and traditional industries while there is still almost no SME sector in the country.
While Saudi Arabia’s latest budget figures show progress in...
IHS Markit to  Buy Rival Ipreo  for $1.8 Billion
Data firm IHS Markit Ltd. said it will buy smaller rival Ipreo...
SBI Reports Record $1.1b Loss
State Bank of India reported a loss of Rs. 7,718 crore ($1.1...
EU, Mercosur Discuss Trade Deal
The European Union and South America’s Mercosur bloc could...

Add new comment

Read our comment policy before posting your viewpoints