France Boasts Second-Highest Taxes In the World

Tax

A new study shows that France taxes its population the second-most among developed countries. Which country claimed the first place spot? Denmark.

As research from the OECD economic think tank attests, the combination of France's income and property taxes, social security payments, and goods and services makes up 45.3% of the country's annual revenue. The percentage marks a .1% increase from 2015, but remains .2% below it's highest point attained in 2014.

At the top of the population-taxing list, Denmark's tax total accounts for 45.9% of its earnings in 2016. However, the country of the Danes maintains a budget deficit of a meager .6% versus the significantly larger deficit of 3.4% in France.

Belgium ranked third, coming in with a tax ratio of 44.6% this year.

For comparison, tax numbers in the US and UK remain notably lower. The United States's taxes make up only 26% of its gross domestic product while the UK's are at 32.2%. According to the OECD's most recent estimate, the average tax versus GDP ratio is 34.3%.

France's numbers set it apart as social security fees comprise of a staggering 16.7% and income taxes a surprisingly low 10.6%. In most other polled countries, the percentage of income taxes is much higher. Denmark's income taxes constitute 28.7% of its GDP, for example.

Since the 1960s, taxes have continually increased throughout Europe, particularly rising in France from 33.6% in 1965. Many French citizens protest the high taxes each year, although the government have recently promised to lower them.

In fact, French authorities declared in July that they would slash business and individual taxes by 11 billion Euros next year. One major step will be to get rid of the local residence tax which affects four-fifths of French households; another to minimize taxes on the wealthy. By 2022, the government promises to reduce corporate taxes to 25%.

Meanwhile, taxes on diesel, petrol, and other ecological concerns, would increase.

France's second-place trophy is secure for 2017 as its finance ministry anticipates the tax rate will hit 43.6%. However, this could soon change.

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