Authors: Nikolaos Kartalis, Panagiota Ioannidou
Title: Tax legislation and economic development during the Greek economic crisis 2008-2018
Abstract
According to the economic theory a country’s tax policy affects its economy. The tax police is a way of shielding the economic policies of an nation purpose to protect its, to improve its competitiveness in order to pursue social prosperity and economic growth. Today many researchers are engaged in exploring the complex relationship between taxation and economic development.
The purpose of this paper is to present the two concepts, to study the relationship between them and to make an effort to investigate the impact of taxation on economic growth. It also presents the characteristics of tax systems that are compatible with high growth rates and examines how the economic activities and growth are affected by the tax system and presents the most and less growth-friendly taxes. It is also investigates the case of the Greek tax system in the past and in the present. Afterwards there is an empirical investigation into the impact of the tax structure on economic growth and the relationship between taxes and GDP using a model for Greece and the course of Greek economy during 2008-2018 and the results of the test, performed via SPSS program. The result from that estimate is the taxation has a negative effect on GDP.
Furthermore the problems of Greek economy are noticed and proposals are listed as salvation.As an conclusion it is shown that taxes have an effect in entrepreneurship, in capital formation, in employment levels and in investments .
Key words: Taxation, Greek tax system, tax policy, economic growth
JEL : M41, M49, M38
