Both the BAC (36.4%) and Navarre (36.2%) are slightly below the Spanish average (36.8%), according to 2020 data. The better economic performance improves distribution and reduces the impact on GDP.
Euskaraz irakurri: Euskal precio fiskala, Espainiako eta EBko batez bestekoen azpitik
When we talk about taxes, we are interested in the comparison between different tax systems. The fiscal burden, which we can measure by relating the amount of taxes and contributions to a country’s gross domestic product (GDP), depends on the socio-economic development of each society, but also on its ideology. Both elements play a fundamental role in determining the amount of the tax.
According to data collected by EITB DATA for 2021, the largest tax burden is in Denmark: taxes are the 46.9% of its GDP. Close by are France (45.1%), Italy (43.3%) and Sweden (42.6%).
All those states are above the average of the 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%) as the Foral Community of Navarre (36.2%) They are slightly below the Spanish average (36.8% in 2020).
There are no major differences between Autonomous Communities, and these correspond to differences in income, unemployment rates and inequality within each area.
For example, Catalonia (38.8%) and Madrid (38.5%) have a higher tax burden: there are higher incomes than in Hego Euskal Herria, but also higher unemployment and more inequality. However, in Galicia (34.9%) and La Rioja (34.2%), the tax burden is lower, as there is more inequality, despite a relatively good unemployment result.
As evidenced by EITB DATA, balanced economic development results in higher incomes and less social inequality, which is why the collection target is distributed among more people and thus reduces the impact on GDP.
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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.
