Taxation levels
The first known system of taxation was in
Ancient Egypt around
3000 BC - 2800 BC in the first dynasty of
the Old Kingdom. Records from the time
document that the pharaoh would conduct a
biennial tour of the kingdom, collecting tax
revenues from the people. Other records are
granary receipts on
limestone flakes and papyrus. Early
taxation is also described in the
Bible. In
Genesis (chapter 47, verse 24 - the
New International Version), it states "But
when the crop comes in, give a fifth of it to
Pharaoh. The other four-fifths you may keep
as seed for the fields and as food for
yourselves and your households and your
children".
Joseph was telling the people of
Egypt how to divide their crop, providing a
portion to the Pharaoh. A share (20%) of the
crop was the tax.
Later, in the
Persian Empire, a regulated and sustainable
tax system was introduced by
Darius I the Great in 500 BC; the
Persian system of taxation was tailored to
each
Satrapy (the area ruled by a Satrap or
provincial governor). At differing times, there
were between 20 and 30 Satrapies in the Empire
and each was assessed according to its supposed
productivity. It was the responsibility of the
Satrap to collect the due amount and to send it
to the emperor, after deducting his expenses
(the expenses and the power of deciding
precisely how and from whom to raise the money
in the province, offer maximum opportunity for
rich pickings). The quantities demanded from the
various provinces gave a vivid picture of their
economic potential. For instance,
Babylon was assessed for the highest amount
and for a startling mixture of commodities;
1,000
silver talents and four months supply of
food for the army.
India, a province fabled for its gold, was
to supply gold dust equal in value to the very
large amount of 4,680 silver talents. Egypt was
known for the wealth of its crops; it was to be
the granary of the Persian Empire (and, later,
of the
Roman Empire) and was required to provide
120,000 measures of grain in addition to 700
talents of silver. This was exclusively a tax
levied on subject peoples.
Persians and
Medes paid no tax, but, they were liable at
any time to serve in the
army.
In India, Islamic rulers imposed
jizya (a
poll tax on non-Muslims) starting in the
11th century. It was abolished by
Akbar.
Numerous records of government tax collection
in Europe since at least the 17th century are
still available today. But taxation levels are
hard to compare to the size and flow of the
economy since
production numbers are not as readily
available, however. Government expenditures and
revenue in France during the 17th century went
from about 24.30 million
livres in 1600-10 to about 126.86
million livres in 1650-59 to about 117.99
million livres in 1700-10 when
government debt had reached 1.6 billion
livres. In 1780–89, it reached 421.50
million livres. Taxation as a percentage
of production of final goods may have reached
15%–20% during the 17th century in places such
as
France, the
Netherlands, and
Scandinavia. During the war-filled years of
the eighteenth and early nineteenth century, tax
rates in Europe increased dramatically as war
became more expensive and governments became
more centralized and adept at gathering taxes.
This increase was greatest in England,
Peter Mathias and Patrick O'Brien found that
the tax burden increased by 85% over this
period. Another study confirmed this number,
finding that per capita tax revenues had grown
almost sixfold over the eighteenth century, but
that steady economic growth had made the real
burden on each individual only double over this
period before the industrial revolution.
Average tax rates were higher in Britain
than France the years before the
French Revolution, twice in per capita
income comparison, but they were mostly placed
on international trade. In France, taxes were
lower but the burden was mainly on landowners,
individuals, and internal trade and thus created
far more resentment.[14]
Taxation as a percentage of
GDP in 2003 was 56.1% in
Denmark, 54.5% in France, 49.0% in the
Euro
area, 42.6% in the
United Kingdom, 35.7% in the
United States, 35.2% in
Ireland, and among all
OECD members an average of 40.7%.
|