Without counting Social Security contributions, the taxes paid to the Basque administrations represent around 21-22% of GDP.
One out of every five euros of the wealth generated annually in the Basque Country (salaries, pensions, savings income, investments…), that is, of the gross domestic product (GDP), is used to pay taxes, as has been verified EITB data.
In the Basque Country, the tax burden of the taxes carried out by the Basque administrations is around 21-22% of GDP, and the collection depends, above all, on the economic cycle. Thus, the lower the economic activity, the lower the collection, and vice versa.
In any case, these data reflect a partial vision, since they do not transfer the full tax burden. To do this, you should include Social Security contributions.
On the other hand, the collection of the foral estates of Álava, Bizkaia and Gipuzkoa in 2022 exceeded the €17 billion (7825 euros per resident person), thanks to the recovery of economic activity and employment. Inflation also contributes to the increase in the collection of taxes linked to consumption, such as VAT.
According to the 2021 data collected by EITB Data, the greatest tax pressure is in Denmark: taxes are 46.9% of its GDP. Close are France (45.1%), Italy (43.3%) and Sweden (42.6%).
All these states are above the average of the European Unionthat is of 41%. The Spanish state, however, is below this average. The tax burden in Spain is 38.4%. The cases of Australia (28.5%) and the United States (26.6%) stand out for their low tax burden.
If we look at 2020, we can compare the data between autonomous communities. Both the Basque Autonomous Community (36.4%) and the Foral Community of Navarre (36.2%) They are somewhat below the Spanish average (36.8% in 2020).
The taxes that the citizens of the Basque Autonomous Community pay are invested in public services. Thus, taxes cover the cost of public services, accessible to all citizens, reducing social inequalities.
Among the main ones are the public health and safetywhich are universal, and education and social welfare, which are allocated to the corresponding people, but their cost is covered by all taxpayers. These four components account for 67% of public spending.
The tax system of a company is made up of the taxes, fees and contributions that are paid, each one for a different reason. EITB DATA wanted to learn about this system, which is distributed between the Basque and Spanish administrations.
The income from work, the wealth of each citizen and other elements such as administrative procedures are taxed. These might be direct or indirect.
Source: Eitb
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