THE ROLE OF TAX POLICY IN INCREASING GDP

Tax policy is considered one of the main tools for macroeconomic stability and economic growth. This article presents a scientific-theoretical and empirical analysis of the role of tax policy in gross domestic product (GDP) growth. Based on Keynesian, neoclassical and endogenous growth theories, the impact of tax rates on investment, labor supply, consumption and innovation is considered. Complex mechanisms such as the Laffer curve, tax competition and fiscal devaluation are analyzed. International experiences (the USA, Germany, Singapore, China and Scandinavian countries) show the impact of tax reforms on GDP. Short-term and long-term effects of tax policy are estimated based on empirical models (panel data regression and DSGE models). The results show that optimal tax policy can increase GDP growth by 1.5–3 percentage points if it stimulates investment and innovation, but when used incorrectly, it leads to a decrease in fiscal deficits and growth. The article provides practical recommendations for developing countries.

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