Excluding social security contributions, taxes paid to Basque administrations represent about 21-22% of GDP.
One in every five euros of wealth generated annually in the Basque Country (salaries, pensions, savings, investments…), i.e. of gross domestic product (GDP), is used to pay taxes, as verified EITB data.
In Euskadi, the tax burden of taxes collected by the Basque governments is around 21-22% of GDP, and collection mainly depends on the economic cycle. So the lower the economic activity, the lower the collection and vice versa.
These data reflect at least a partial view, as they do not convey the full tax burden. To do this, you must include social security contributions.
On the other hand, in 2022 the collection of the estates of Álava, Bizkaia and Gipuzkoa exceeded the €17 billion (7825 euros per inhabitant), thanks to a recovery in economic activity and employment. Inflation also contributes to the increase in the collection of taxes related to consumption, such as VAT.
According to the data collected by EITB Data for 2021, the largest tax burden is in Denmark: taxes amount to 46.9% of GDP. Close by are France (45.1%), Italy (43.3%) and Sweden (42.6%).
All of these states are above average European Unionthat’s from 41%. The Spanish statehowever, is below this average. The tax burden in Spain is 38.4%. The cases of Australia (28.5%) and the United States (26.6%) stand out for their low tax burden.
Looking at 2020, we can compare the data between autonomous communities. Both Basque Autonomous Community (36.4%) and the Foral Community of Navarre (36.2%) They are slightly below the Spanish average (36.8% in 2020).
The taxes paid by the citizens of the Basque Autonomous Community are invested in public services. Taxes thus cover the cost of public services, accessible to all citizens, reducing social inequalities.
One of the most important are the public health and safetythat are universal, and education and social security, which are allocated to the corresponding people, but their costs are covered by all taxpayers. These four components account for 67% of government expenditure.
A company’s tax system consists of the taxes, rates and premiums that are paid, each for a different reason. EITB DATA wanted to learn more about this system, which is distributed between the Basque and Spanish administrations.
The income from work, the wealth of each citizen and other elements such as administrative procedures are taxed. These could be direct or indirect.
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Source: EITB
I’m Wayne Wickman, a professional journalist and author for Today Times Live. My specialty is covering global news and current events, offering readers a unique perspective on the world’s most pressing issues. I’m passionate about storytelling and helping people stay informed on the goings-on of our planet.
