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The Role of The Proportional Income Tax on Economic Growth of Bulgaria

Stoyan Tanchev

Economic Studies journal, 2016, issue 4, 66-77

Abstract: This article looks at the possibilities of proportional and progressive income tax in Bulgaria, as factors for the formation of economic growth. The empirical study found proportional relationship between progressive taxation and economic growth. Inversely proportional relationship has been registered between the dynamics of growth and the proportional taxation. The results show the presence of synchronicity between progressive income taxation and collection. There have been established evidences for presence of causality.

JEL-codes: E62 H21 H24 (search for similar items in EconPapers)
Date: 2016
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Handle: RePEc:bas:econst:y:2016:i:4:p:66-77