Corporation tax raises $1.5 trillion a year

All this talk of tax competition, tax planning, tax avoidance, and so on can make one terribly pessimistic. After reading Tim Harford and Michael Devereux both argue that we may as will give up on corporation tax, I got to wondering how much it actually raises. Luckily I had some data to hand, from the USAID ‘Collecting Taxes’ database.

The headline is that, globally, governments raise US$ 1.5 trillion in corporation tax annually, equivalent to 2.5% of World GDP.

The best way to consider developing countries, meanwhile, is I think to take the low and lower middle-income countries, but remove China and India, which between them raise about US$ 200 billion a year. The remainder is $132 billion, which is uncannily similar to the global aid budget.

Not bad, I think!

Corporation tax revenue by income group

Income group Corporation tax revenue, US$
Low

100,139,928,968

Lower-middle

229,578,272,278

Upper-middle

189,029,602,494

High

1,017,261,856,529

Total

1,536,009,660,269

Corporation tax revenue by geographical area

Income group Corporation tax revenue, US$
East Asia and Pacific

444,333,627,120

Central Europe and Central Asia

69,008,374,868

Latin America and the Caribbean

102,864,912,402

Middle East and North Africa

86,836,609,348

South Asia

79,332,630,557

Sub-Saharan Africa

35,178,044,732

Western Europe

375,640,359,186

United States and Canada

342,815,102,055

Total

1,536,009,660,269

The data
Feel free to download and use this yourself. The methodology is a little naughty, in that I worked backwards from corporation tax/GDP ratios and absolute GDP figures to get absolute tax figures. But I did a few spot checks, and it seems to work.

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3 thoughts on “Corporation tax raises $1.5 trillion a year

  1. Pingback: Sen. Levin, Small Businesses Push for Corporate Tax Hikes « Ye Olde Soapbox

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