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1 Cristina Enache, Sources of Government Revenue in the OECD 1 (2021)

handle is hein.taxfoundation/ssogvtrnu0001 and id is 1 raw text is: Sources of Government Revenue in the OECD Cristina Enache Economist FISCAL FACT No. 748 Feb. 2021 Key Findings The Tax Foundation is the nation's leading independent tax policy research organization. Since 1937, our research, analysis, and experts have informed smarter tax policy at the federal, state, and global levels. We are a 501(c)(3) nonproft organization. ©2021 Tax Foundation Distributed under Creative Commons CC-BY-NC 4.0 Editor, Rachel Shuster Designer, Dan Carvajal Tax Foundation 1325 G Street, NW, Suite 950 Washington, DC 20005 202.464.6200 taxfoundation.org In 2019, OECD countries raised on average one-third of their tax revenue through consumption taxes such as the Value-added Tax (VAT), making consumption taxes the most important revenue source. Social insurance taxes and individual income taxes were the second and third most important sources of tax revenue in the OECD, at approximately 25 percent each. That's a change from 1990, when individual income taxes accounted for more revenue than social insurance taxes. On average, OECD countries collected little from the corporate income tax (9.6 percent) and property tax (5.6 percent). When looking at OECD and non-OECD countries by region, Asia, Africa, and South America rely more on consumption taxes and corporate income taxes and less on income and social insurance taxes compared to the OECD average. On average, OECD and non-OECD countries in North America rely more on corporate income taxes and other taxes than the OECD average and less on social insurance and individual taxes. Oceania doesn't rely at all on social insurance taxes, while consumption taxes are the region's most important revenue source. On average, 16.1 percent of the total tax revenue collected by the 10 federal or fiscally decentralized OECD countries is raised at the regional or state level.