Usual Grauniad complaint that if taxes are low then there\’s no such thing as society (cont. pg 94).
Among the Arab oil producers, for example, taxation accounted for only 5% of gross domestic product in 2002, rising to 17% in the non-oil countries – which is still very low compared with Germany (39%), Italy (41%) and Britain (37%).
Not quite, for we normally include such things as oil and gas royalties as taxes (which they are of course, upon Ricardian Rents).
However, there\’s a much larger fault in this analysis. I\’ve not got the exact number at my fingertips but the UK govt only takes in the low 20s % ish level of GDP for the actual goods it buys/provides.
All the rest of that tax share of GDP is on redistribution of incomes. And I\’m deeply unconvinced that anyone thinks we\’ve got too little government in the UK (even if there are many who think there\’s too little redistribution).