Rich countries are raising more money from taxpayers than they have in decades to finance a burst of state spending as surging interest ratesmake borrowing less attractive.
Tax revenues have risen to record levels as a share of economic output in a number of major economies, including France, Japan and South Korea, according to data published by the Organization for Economic Cooperation and Development, the club of mainly rich countries.
The increases are worth hundreds of billions of dollars in additional revenue for governments that are navigating an array of new spending needs, from military priorities to industrial policy.
They underline a trend toward big government, amplified by the Covid-19 pandemic and fueled by national-security concerns in a world of geopolitical divisions, the need to care for aging populations and the fight against climate change.