Higher Taxes Reduce Economic Growth: Overwhelming International Evidence

PIDE Knowledge Brief No. 14:2020
Publication Year : 2020

For Decades, The Topic Of Economic Growth And Its Prosperity Has Been The Heart Of Debate All Over The World. Without Any Doubt, Technology, Investment (In Both Human And Physical Capital) And New Techniques Of Production Are The Growth Fundamentals. Due To Its Power To Affect Investment And Profitability, Taxation Plays A Fundamental Role In Choices Made And Ultimately, The Pace Of Development And Growth. In Nations Of The World, The Rate Of Taxation Has Risen Consistently Through The Course Of The Last Century. Such Huge Increments In Tax Collection Bring Up Significant Issues About The Impact They Have Upon The Growth Of The Economy. This Section Explores The Literature On Taxation And Growth Conducted Based On Both National And International Studies.