The Impact of Tax Policy on Economic Development

This article analyzes the impact of tax policy on economic development from both theoretical and practical perspectives. The main objective of the study is to evaluate the influence of tax policy on investment activity, entrepreneurship, state budget revenues, and overall economic growth. Statistical and econometric methods were applied to examine the relationship between tax burden and key economic indicators. Comparative analysis and regression analysis were used as the primary research methodologies. The findings indicate that an optimal tax policy stimulates economic growth, increases investment activity, and improves the business environment. At the same time, excessive tax burdens may reduce economic activity and discourage entrepreneurship. The study demonstrates that tax incentives and effective fiscal mechanisms contribute significantly to sustainable economic development. The research also highlights the importance of balancing fiscal stability with business competitiveness. The results provide scientific recommendations for improving tax policy and strengthening economic efficiency through fiscal reforms.