The nexus between taxation and economic growth in the EU
The nexus between taxation and economic growth in the EU

Summary/Abstract: The aim of this study is to analyze the effects of taxation upon GDP per capita by using a regression analysis on the 27 EU countries for the period 2012-2022, to see if taxation can be beneficial to EU economies in general or if it would be better for governments to lower taxes to achieve better economic performance. To achieve this goal panel data was used for the EU27, using two different representatives for economic growth, GDP per capita and %ΔGDP per capita, and the same for taxation, tax burden and tax revenues per capita. For %ΔGDP per capita the only statistically significant results were that tax revenues per capita positively affect it. This leads to the conclusion that some forms of taxation are beneficial, and others are detrimental.

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