Economical tax ratio

Economicalally one understands the portion of the raised taxes in relation to the gross domestic product of a country by tax ratio.

It affected by the control item on the one hand, by the presence by tax exemptions, tax loopholes and moonlighting on the other hand.

A high tax ratio usually equated with extensive national rearrangement, missing economic incentive effects and small attractiveness of the location due to high production additional expenses.

Germany had one in the year 2003 in the international comparison with 20,8% the lowest and in the European Union even the lowest overall economic tax ratio. With the delivery ratio Germany lay however in the leading group.

Cash-moderate tax revenue in the Federal Republic of Germany 1995-2004

Economical tax ratio

Economically the tax ratio describes the proportional portion of the taxes which can be exhausted from an enterprise of the yearly surplus before taxes.

Company tax ratio

Among them one understands the relationship from tax expenditure to the profit before taxes, also as ETR = Effective Tax rate designation.

Supplying tax ratio

Height and development of the expenditures for supplying state alone over the load-carrying capacity of the utility system only little. The relationship of the future expenditures for supplying to the future gross domestic product (supplying ratio) is crucial and to the future tax receipts (supplying tax ratio).

Supplying tax ratio the portion of the expenditures for supplying of the tax receipts is called.

In such a way determined supplying tax ratio, is apart from the supplying ratio an important size for the evaluation of the load-carrying capacity of the age security system and for the financial plan of the regional administrative bodies. Since the tax receipts are assigned to the individual regional administrative bodies, the different recourse to of the financial power of the occupation ranges can be clarified on the basis the supplying tax ratio. That is of importance, because the expenditures for supplying of the officials, judges, career soldiers as well as their survivors are usually financed from the current household and thus in principle from tax receipts. The future tax receipts are derived on the basis of a constant tax ratio from the gross domestic product. The development of the supplying ratio and the supplying tax ratio indicates, to which extent the expenditures for supplying will take the gross domestic product and the tax receipts in requirement. From this consequences for the lastingness of the financing of the utility system can be derived.

See also

Delivery ratio

Articles in category "Tax ratio"

We found here 8 articles.

Related Websites

We found here 3 related websites.

• Department of Revenue: Property Tax Ratio Manual
  Each year county assessors develop a new assessment and tax roll. ... The process for measuring these changes is called the ratio study. ...


• OECD Observer: The truth about tax burdens
  And a few more, including Ireland, Japan, New Zealand and Sweden, have succeeded in reducing the tax ratio from their peaks of 10 or 15 years ago, ...


• Tax Ratio Lowest
  The study shows that in 2001 the tax ratio, that is, the ratio of tax ... This was not only the lowest tax ratio in Europe, but anywhere in the world, ...