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Taxes Are a Threat to Economic Growth and Development

Taxes Are a Threat to Economic Growth and Development

Introduction

This study aimed to assess the impact of tax policies on tax revenues and economic growth. Our literature review, it appears that fiscal policies have a mixed impact on economic growth. Following the study, after reviewing the fiscal policies implemented since independence, we conducted an analysis of the structure and evolution of tax in relation to the behaviour of gross domestic product.

At the end of study, it appears that fiscal policies have influenced to some extent economic growth in. In particular, tax rates, including those on tax corporate profits are negatively correlated with economic growth. In other words, an increase in tax rates on corporate growth seems to reduce the decline while their favour. It also emerged that the taxes are understaffed optimality compared to the real capacity of the economy.

It is true that efforts have been made in recent years towards the improvement of the tax burden and facilitating economic activity. However, it is important for the tax administration on the one hand to strengthen the measures taken in respect of VAT in the context of the fight against tax evasion, and secondly to further reduce tax rates, including for corporate income and individuals. This should allow optimizing domestic tax revenue while promoting the development of private initiative for sustained growth and increased success of ongoing projects, in particular the strategy of poverty reduction.

The material wealth of the industrial revolution has not made ??people happier. Today we know that, fortunately, the production of goods shall only as long as they serve the basic service. This is secured; other needs such as good social relationships are important but are threatened by economic growth. The end of economic growth can therefore be a chance to be happy.

Discussion

Why economic growth cannot make us happy - and must not be the end of us makes you unhappy. Many goods that we know, the industrial society make us happier for two reasons: First we get used to it. After two or three decades, a luxury for the few past is now more or less natural one need to compare the features of today's small car with the upper class of 1970. Second, some things that actually increase permanently wellbeing, naturally sweet: A higher position in the profession is not about anyone has it is relative to the other and cannot be propagated. Also a bigger car is not permanent (Beenstock 1987 Pp. 122-129).

Some researchers such as Richard Layard, director of the London School of Economics, from which the above reasons call for a reorientation of policy: Non-economic growth, but the greatest happiness for all should be the prime objective of the tax policy. In poor countries, this could mean economic growth, to the basic material needs is met, in rich countries, but stood to other measures: some taxes on labour, so that they will pay less this would end the race status and strengthen ...