Macroeconomic background and tax revenue trends

This chapter first provides an overview of recent macroeconomic developments in OECD countries, including trends in growth, productivity, investment, employment, public finances and inequality. It then describes tax revenue trends, examining both trends in total tax revenues and changes in the composition of tax revenues – i.e. tax mixes – in OECD countries. This overview of macroeconomic and tax revenue trends sets the stage for the subsequent discussion on tax policy reforms as tax policy developments are closely connected with economic trends. Indeed, tax revenues are affected by changes in macroeconomic conditions and economic developments themselves are key drivers of tax reforms.