WHY TAXES AND ECONOMY???
Effectiveness of taxes in economic development There is no doubt that taxes play an important role in economic development. In fact, taxes can be seen as one of the most important tools that governments have at their disposal to spur economic growth and development in their countries. Governments use taxes in a number of ways to promote development and economic growth. Some of the ways that governments can use taxes to support economic development include through the promotion of investment, the provision of infrastructure, the regulation of capital markets and the encouragement of the adoption and use of new technologies. (OECD) Raising revenue by imposing taxes on individuals and businesses and using the revenues to invest in public infrastructure and programmes that are designed to stimulate economic activity and promote growth is referred to as direct taxation. Using taxes on imports or exports in order to promote exports and encourage domestic production is known as indirect...