Influence of Tax Pressure over Tax Evasion

Mihu Stefan ()
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Mihu Stefan: “Spiru Haret” University of Constanta

Ovidius University Annals, Economic Sciences Series, 2012, vol. XII, issue 1, 1537-1543

Abstract: The development of the civilisation leads to the increase and diversification of human needs, and implicitly, to increase of the demand for public goods and quasi – public goods. In consequence, the financial effort claimed by their fulfilment increases from one period to another, leading to over – dimension in the demand of public financial resources, which are nevertheless restricted and most often, insufficient. Given this context, a problem arises regarding the identification of an efficient solution to procure greater and greater public financial resources. May it be the monetary emission without coverage to this regard? Taking into account the harmful effects on the long and average term of such a measure over the stability of macroeconomic indicators (and here we take into account, first of all, the amplification of inflation trends), we appreciate that the answer can only be negative. May the effective solution be represented by contracting State loans or increasing the general taxation level? Taking into account that the State loans are assimilated, most of the times, to certain “postponed taxes”, it is obvious that in certain cases, the effect is the same: increase of the taxpayer’s tax burden (either immediately, or in a future period). Although the effect of the two action driven directions is non – popular, they are certainly preferred to a monetary emission without coverage. There is a single amendment: the public authority should resort to their application in practice only when the disproportion between the demand and supply of public financial resources is obvious and prior public expenses were reduced to a minimum level, under which there is no other “limit”.

Keywords: tax pressure; public financial resources; unique taxation rate; inflation; taxation basis/grounds; tax evasion (search for similar items in EconPapers)
JEL-codes: E62 (search for similar items in EconPapers)
Date: 2012
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