How Do Trends in the Composition of Tax Receipts and in Tax Rates Compare with the “Tax and Growth” Recommendations?

The level and mix of taxation vary markedly across OECD countries but there have been a number of common trends.Many countries have cut personal and corporate tax rates while broadening the tax base and increasing social security contributions. Meanwhile, there has been an increased use of value-added taxes and a general trend to higher VAT rates. The data presented in this chapter shows to which degree countries have followed strategies with regard to the composition of tax revenues and changes in statutory tax rates that are similar to the “tax and growth” recommendations. The analysis also helps to identify the most severe “tax and growth” obstacles.