- The tax-to-GDP ratio measures a country’s tax revenue, relative to the size of its economy (measured by its Gross Domestic Product, or GDP)
- A higher tax-to-GDP ratio means more money is going to government coffers, and in theory, public services like education and infrastructure
- Out of 35 OECD countries, Denmark has the highest tax-to-GDP ratio at 46.3%, while Mexico ranks last at 16.5%
Source: https://www.visualcapitalist.com/comparing-tax-systems-around-the-world/
