The Impact of Corporate Income Tax on Economic Development

This study aims to analyze the role of corporate income tax (profit tax) in economic development, focusing on its impact on investment activity, business performance, and fiscal sustainability. The research seeks to identify the optimal balance between taxation and economic growth within developing economies, particularly in the context of Uzbekistan. The study applies a mixed-method approach combining econometric analysis, comparative analysis, and theoretical modeling. Secondary data from national statistics and international financial institutions were used. The findings indicate that moderate corporate income tax rates positively influence economic growth by maintaining fiscal stability while encouraging business activity. However, excessively high tax rates discourage investment and reduce corporate profitability. This research contributes to the existing literature by integrating classical taxation theory with modern economic growth models, providing a comprehensive framework for analyzing tax efficiency in transition economies.