The Impact of Tax Policy on Economic Growth: A Theoretical and Empirical Analysis

Tax policy is one of the most important instruments of economic regulation used by governments to influence economic activity and ensure fiscal sustainability. This study examines the relationship between tax policy and economic growth from both theoretical and empirical perspectives. The research analyzes how different tax structures, tax burdens, and tax administration practices affect investment activity, business development, and overall economic performance. Using comparative statistical analysis based on data from international economic organizations, the study evaluates the impact of tax revenues as a share of GDP and the structure of taxation on economic growth in selected economies. The results indicate that balanced tax systems with moderate tax burdens and efficient tax administration contribute to sustainable economic growth. In particular, consumption-based taxes tend to have a less negative impact on economic performance compared to taxes on labor and corporate income. The findings also highlight the importance of tax reforms aimed at simplifying tax systems, improving tax compliance, and introducing digital technologies into tax administration. Overall, the study concludes that well-designed tax policies can promote investment, stimulate business activity, and support long-term economic development.