Excessive Taxation, Support of the Intensification of Underground Economy
Excessive Taxation, Support of the Intensification of Underground Economy

Summary/Abstract: An essential component of the overall public policies is represented by the fiscal policy represented by the state authority which are interrelated and mutually interacting with the other elements of economic policy with an prevailing incidence on promoting an aggressive investment policy. When the tax system known knows characteristics such as legislative instability, inconsistently application of tax laws, focusing on indirect taxation and associated with lack of civic tax from taxpayers in accordance with a pronounced tax burden and also coupled with a hesitant approach to policy makers in order to adopt structural reforms and policies at macroeconomic level. In this well defined scenario, the state must understand, however, that only the application of drastic coercive measures can not generate, by itself, miraculous results in fighting the underground economy and tax evasion, if they are not followed by removing the causes that have generated this state of affairs in the fiscal behavior of economic agents.

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