The relation between the size of tax charges and economic growth rate may be considered one of the most important, and at the same time most controversial, issues of economics. Taxes not only limit incomes, which individuals have at their disposal, but also indirectly, through affecting, inter alia: the size of investments, motivations to conducting professional activity, including the tendency of people to work, produce and invest, may affect economic growth rate. The article presents the current studies regarding the impact of taxes on economic growth and development. At the same time it is an attempt to answer the questions: Does the size of tax charges actually affect economic growth rate? If so, to what extent?
Financed by the National Centre for Research and Development under grant No. SP/I/1/77065/10 by the strategic scientific research and experimental development program:
SYNAT - “Interdisciplinary System for Interactive Scientific and Scientific-Technical Information”.