Tax mix in New Zealand as percentage of GDP since 1965

That GST certainly played a major role since the 1980s. Taxes on corporate profits are on the up and up despite what you would believe from the grumblings of the Left down under.

image

Source: OECD Stat.

Tax mix in the USA as a percentage of GDP since 1965

The only major change in the US tax mix in the last 50 years has been greater reliance on social security contributions.

image

Source: OECD Stat.

The share going to income taxes bobbing up and down quite a lot in the last 30 years much of that to do with the business cycle. In the 1990s, the share of taxes from personal income increased during boom times. In the Great Recession, the tax share to income tax rose with the declining economy as did that on corporate profits.

Taxation of personal income and social security contributions as a percentage of US, British, Danish, German, French and New Zealand GDPs since 1965

image

Source: Tax – Social security contributions – OECD Data and Tax – Tax on personal income – OECD Data.

The impact of the 1986 GST on the New Zealand tax mix since 1965

The introduction of the GST in 1986 led to a major change in the New Zealand tax mix. There was no offsetting income tax cuts.

image

Source: Tax – Tax on goods and services – OECD Data and Tax – Tax on personal income – OECD Data.

General government expenditure and general government revenue as a % of Australian and New Zealand GDP since 1970

I do not trust the numbers for New Zealand prior to the early 1990s released by the OECD. New Zealand simply did not have a tax structure including a GST in the double digits back then to support estate of that size. Nonetheless, the size of government in New Zealand is systematically larger than in Australia, a richer country which can afford a large government and generous welfare state.

image

Source: General government – General government revenue – OECD Data and Data extracted on 12 Feb 2016 08:45 UTC (GMT) from OECD.Stat from OECD Economic Outlook November 2015.

General government spending and general government revenue as % of US GDP since 1970

image

Source: General government – General government spending – OECD Data and Source: General government – General government revenue – OECD Data.

Japanese, Korean and US tax revenues as a % of GDP since 1965

Japanese and Korean growth in the size of government seems to validate Directors’  Law. Government get bigger after countries become rich.

image

Data extracted on 23 Feb 2016 07:08 UTC (GMT) from OECD.Stat.

Japanese, Korean and US general government expenditure as a % of GDP since 1960

image

Data extracted on 23 Feb 2016 07:45 UTC (GMT) from OECD.Stats.

Tax revenues as % of US, British, Canadian and Australian GDPs since 1965

image

Data extracted on 23 Feb 2016 07:08 UTC (GMT) from OECD.Stat

   .

General government expenditure as % of US, British and Canadian GDP since 1960

Both the British and Canadian economies experienced major winding backs in the size of government. Only the UK, under neoliberal pawn and closet Thatcherite Tony Blair, was that undone. He is now despised by many Labour Party members including its current leader for this record.

image

Data extracted on 23 Feb 2016 07:45 UTC (GMT) from OECD.Stat.

What do 10 countries spend their #tax revenue on?

General government expenditure as % of Portuguese, Italian, Greek and Spanish GDP since 1960

I do not think any of these countries have governments who can really handle managing half of national income on a regular basis. The Italian, and I assume Greek GDPs at least are topped up quite considerably to take account of their underground economies. The top up for Italy is 20%.

image

Data extracted on 23 Feb 2016 07:45 UTC (GMT) from OECD.Stat.

Tax revenue as % of Portuguese, Italian, Greek and Spanish GDP

image

Data extracted on 23 Feb 2016 07:08 UTC (GMT) from OECD.Stat.

Once were Sweden! New Zealand, Swedish and Australian general government expenditure as % of GDP since 1986

I came across this data showing that New Zealand and Sweden had the same sized public sectors in the mid-1980s some years ago. The data could not be found again for a long time in the OECD statistical databases. One reason was the OECD changed its name to general disbursements.

image

Data extracted on 12 Feb 2016 08:45 UTC (GMT) from OECD.Stat.

The size of the public sector in Australia has not changed much for 30 odd years. The public sector has been in a long decline in Sweden and New Zealand since peaks  as a percentage of nominal GDP in the late 1980s  and early 1990s respectively.

I know of no comments on the large size of the New Zealand public sector as measured by general government expenditure in the late 1980s. Its contribution to the stagnant economic growth of that time is worth exploring.

The left-wing tax dilemma

Source: The President’s Revenue Problem | Tax Foundation.

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