Wpływ opodatkowania na wzrost gospodarczy
The Effect of Taxation on Economic Growth

Summary/Abstract: Using the AK growth model, the author analyses the effect of taxes on long term economic growth, assuming that all government expenditure is spent on public consumption. The author shows that in order to attain the highest possible growth rate, one has to eliminate all the taxes, both income tax and consumption taxes. He proves mathematically that indirect taxes are less detrimental to economic growth than direct taxes imposed on wages and profits. Moreover, wage taxes are much more detrimental to economic growth as compared with the same percentage tax imposed on capital profits. Using empirical data for Poland, the author analyses the growth effects of 12 different variants of tax reduction. Reducing the total tax burden from 33% to 30% of GDP would increase the GDP growth rate by 1/4 percentage point. A significant acceleration of economic growth could also be achieved by raising the expenditure tax rates and lowering the income tax rates, without effecting the total amount of tax revenues.

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