US Tax Burden More Than a Third Lower Than G7 Average

Chicago, IL, March 13, 2018 (GLOBE NEWSWIRE) —

The US has a tax burden of 22 percent of gross domestic product (GDP), a third (30 percent) lower than the G7 average (of 31.1 percent) shows research by UHY, the international accounting and consultancy network.


The US government’s tax take is also over a fifth lower than the average global rate (28.2 percent), and is 50 percent lower than the average in Europe (43.3 percent) in the study.


The US percentage could fall further in the coming years as some commentators claim that President Donald Trump’s recent tax plan could see US government tax revenues fall by as much as $2 trillion.


The US was ranked joint 23rd in the study. UHY studied 34 countries around the world, calculating what percentage of that country’s GDP is taken by the government in tax (see chart below).


Generally, European economies dominated the top of UHY’s table of the highest taxes. European countries, on average, have a tax burden of 43.3 percent: over 50 percent higher than the global average (26.6 percent) in the study.


Denmark came top of the study with the government’s tax take representing 53.5 percent of total GDP.


Emerging economies in general have seen much lower levels of government tax ‘take’, including many in the ASEAN (Association of Southeast Asian Nations) trading bloc such as Malaysia (16.5 percent) and the Philippines (13.9 percent).


Rick David of UHY member firm UHY Advisors in the US, comments: “Lower personal and business taxes can help the US economy spur growth and create incentives, particularly for investors and larger, more globally-focused businesses.”


“The President’s recent tax cuts – of up to $1.3 trillion – are designed to help sharpen competitive advantage. Today, the US tax position is looking compelling for many businesses compared to the rest of the G7.”


“The US government wants to create an environment for businesses to grow and reducing the tax burden will help create a solid foundation for that. These latest cuts could come as a bit of a wakeup call to other developed economies for them to consider more ways to attract businesses.”


“Developed economies need to investigate ways of lowering the tax burden for businesses or they may find increasing competition for foreign-based companies from more dynamic developed or emerging countries.”

“It’s not easy for more developed economies to balance an aging population with trying to reduce the tax rate.”


Levels of tax take by national governments are of growing interest, particularly for the EU at the moment with Brexit on the horizon, to secure government funding in the short term and encourage growth in the long-term.




Rank Country Tax as a %
of GDP (2017)
1 Denmark 53.5%
2 France 51.9%
3 Italy 46.1%
4 Portugal 43.9%
5 Germany 43.8%
Europe 43.3%
6 Netherlands 41.8%
7 UK 38.3%
8 Canada 38.0%
9 Spain 37.6%
10 New Zealand 36.4%
11 Malta 35.8%
12 Brazil 34.9%
13 Japan 34.4%
14 Australia 33.2%
15 Poland 32.0%
G7 31.1%
16 Uruguay 29.4%
17 Romania 28.5%
World 28.2%
18 Israel 26.7%
19 Ireland 26.2%
20 Mexico 25.7%
21 Vietnam 22.9%
22 China 22.4%
23= UAE 22.0%
23= USA 22.0%
BRIC 21.8%
25 Argentina 19.9%
26 Zambia 19.1%
27 Russia 17.3%
28 Malaysia 16.5%
29 Pakistan* 16.4%
30 Philippines 13.9%
31 Guatemala 11.8%
32 Bangladesh 10.8%
33 India 10.2%
34 Nigeria 4.7%


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UHY LLP is a licensed independent CPA firm that performs attest services in an alternative practice structure with UHY Advisors, Inc. and its subsidiary entities. UHY Advisors, Inc. provides tax and business consulting services through wholly owned subsidiary entities that operate under the name of “UHY Advisors.” UHY Advisors, Inc. and its subsidiary entities are not licensed CPA firms. UHY LLP and UHY Advisors, Inc. are US members of Urbach Hacker Young International Limited, a UK company, and form part of the international UHY network of legally independent accounting and consulting firms. “UHY” is the brand name for the UHY international network. Any services described herein are provided by UHY LLP and/or UHY Advisors (as the case may be) and not by UHY or any other member firm of UHY. Neither UHY nor any member of UHY has any liability for services provided by other members.


About UHY, the network

Established in 1986 and based in London, UK, UHY is a leading network of independent audit, accounting, tax and consulting firms with offices in over 325 major business centres across more than 95 countries. Our staff members, over 7,850 strong, are proud to be part of the 16th largest international accounting and consultancy network. Each member of UHY is a legally separate and independent firm. For further information on UHY please go to


UHY press contact: Dominique Maeremans on +44 20 7767 2621 Email:


UHY is a member of the Forum of Firms, an association of international networks of accounting firms. For additional information on the Forum of Firms, visit


UHY is an international association of independent accounting and consultancy firms, whose organizing body is Urbach Hacker Young International Limited, a UK company. Each member of UHY is a separate and independent firm. Services to clients are provided by the UHY member firms and not by Urbach Hacker Young International Limited. Neither Urbach Hacker Young International Limited nor any member of UHY has any liability for services provided by other members.


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CONTACT: Chris Clark