Tax Revenue and Economic Development “A Synthesis of Literature and Theoretical Issues"
Keywords:
Tax Revenue, Economic Development, theoretical issuesAbstract
This study explores the critical relationship between tax revenue and economic development, emphasizing the role of effective taxation in fostering sustainable growth. The research synthesizes existing literature on the topic, highlighting the theoretical frameworks that explain how different types of taxes such as income, corporate, and value-added taxes affect economic indicators like GDP growth, poverty reduction, and employment rates. Employing a quantitative research design, the study analyzes secondary data from multiple countries over a period of ten years to investigate the impact of tax revenue on various aspects of economic development. The findings suggest that a well-structured tax system can mobilize resources for public investment, reduce income inequality, and stabilize the economy. Additionally, the study identifies significant gaps in the current literature, particularly concerning the effects of taxation on informal economies and the long-term impacts of tax reforms. Based on these insights, recommendations are provided for policymakers to enhance tax administration, diversify tax revenue sources, and promote international cooperation in tax matters.