Which country has a lower tax burden than the United States as a percentage of GNP?

The correct answer is Mexico, as it has a lower tax burden than the United States when considering the percentage of Gross National Product (GNP).

In comparison, the United States has a relatively high overall tax burden due to its combination of corporate, income, and consumption taxes. Many countries, including Denmark, Germany, and Great Britain, tend to have higher tax burdens, reflected in extensive social systems which result in a larger share of taxes relative to GNP.

Mexico's economy features a lower overall tax revenue, with a significant informal economy that contributes to lower tax collections and a tax structure that does not impose heavy burdens on individuals and businesses compared to the U.S. This context clarifies why Mexico is the right answer when assessing lower tax burdens relative to GNP against the other countries listed.