Tax and contribution ratio
The total share of taxes and tax-like payments that a company or private household has to pay to the state. In 2010, the ratio in the calculation Total of Taxes to Gross Domestic Product was around 40 percent in Germany. – As the level of development of an economy increases, this ratio rises because the demands on government tasks also grow. – See Third-Grade Money, Welfare State Trap, Tax Burden Ratio, Constitutional Article One, Growth-Debt Fact, Historical, Wagner’s Law, Second-Grade Money. – Cf. Monthly Report of the Deutsche Bundesbank of October 2008, pp. 35 ff. (Tax Ratios in Comparison; Overviews).
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