13 November 2019 | Tax Foundation / United States
On October 2nd, the Tax Foundation released the 2019 International Tax Competitiveness Index, which compares OECD countries on over 40 variables that measure how well each country’s tax system promotes sustainable economic growth and investment.
This new resource gives a comprehensive overview of how developed countries’ tax codes compare, explains why certain tax codes stand out as good or bad models for reform, and provides important insight into how to think about tax policy.
The best tax codes in the OECD:
- Estonia (for the sixth year in a row!)
- New Zealand
- Lithuania (included in the Index for the first time)
The worst tax codes in the OECD:
36. France (for the sixth year in a row!)
In particular, the Index looks at a country’s corporate taxes, individual income taxes, consumption taxes, property taxes, and the treatment of profits earned overseas in terms of how they adhere to the important tax policy aspects of competitiveness and neutrality.
It’s important to note that the Index measures both the level of taxes and how taxes are structured.
A well-structured tax code is easy for taxpayers to comply with and can promote economic development while raising sufficient government revenue.
A poorly structured tax system can be costly, distort economic decision-making, and harm domestic economies. Many countries have recognized this and have reformed their tax codes. Compare your country’s tax system with this interactive tool.
Here you can find the Index translated into multiple languages (French, Italian, Greek, and German) and several shareable graphics for social media.
If you have any questions about the Index, don’t hesitate to contact Daniel Bunn, Director of Global Projects at the Tax Foundation.