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The United States is the highest-taxed nation in the world

From bullshitopedia
The United States is the highest-taxed nation in the world
FALSE
"The United States is the highest-taxed nation in the world."
Domain Economy & Labor
Tactic Statistical & Evidentiary Distortion
False Context
Era Current
First seen 2015
Origin Donald Trump, repeatedly, during the 2016 campaign and in 2017 while promoting tax cuts
Last reviewed 2026-10-29
Further reading: books on Economy & Labor

Donald Trump repeatedly said during the 2016 campaign and in 2017 that the United States was the highest-taxed nation in the world. By the standard international measure, total tax revenue as a share of the economy, the US is among the lower-taxed developed countries. The kernel of truth was that the US had one of the highest statutory corporate tax rates before 2018.

The claim

The phrase was used to argue for the 2017 Tax Cuts and Jobs Act.

What the evidence shows

  • Total tax burden. OECD data show US taxes at roughly a quarter of GDP, below the average of about a third among OECD countries and well below countries such as France, Denmark and Sweden.
  • Corporate rate. The US statutory corporate rate of 35 percent was among the highest in the developed world before the 2017 law cut it to 21 percent. Effective rates paid by companies were lower because of deductions and credits.
  • Individuals. Middle-income Americans pay lower combined taxes than their counterparts in most rich countries.

Why it matters

A narrow true point about one rate was stretched into a sweeping false claim about the whole country.

See also

Sources

  • OECD, Revenue Statistics (annual).
  • PolitiFact, "Donald Trump says U.S. is 'highest taxed nation in the world'," 2016.