gvA Update

Tax Revenues as a Percent of GDP Typically, economic growth is a major driver of the level of tax revenues. Tax revenues tend to go up when the economy is doing well and to decline during an economic downturn. On the other hand, economies that have high tax revenues as a percent GDP tend to be stable and inclusive. In this connection, 1-which of the following countries has the highest tax revenue as a percent of GDP? 1. U.S 2. China 3. Denmark and 4. Brazil. 2-Which of the following major African countries has the lowest tax revenue as a percent of GDP? 1. Nigeria 2. South Africa 3. Ghana, and 4. Egypt. ANSWERS 1. Denmark is the country with the highest tax revenue as a percent of GDP. 2. Of the major African countries listed, Nigeria has the lowest tax revenue as a percent of GDP. However, it is useful to note that most Arab oil producing countries with large dependence on crude oil also have very low tax revenues as percent of GDP. Other major oil producing countries around the world like Russia, Mexico, the United States and even Venezuela have much higher tax revenues as a percent of GDP to reflect higher degrees of economic diversification and shared prosperity.

 

Posted: Oct 20th, 2015 @ 02:22:24 AM