Abstract:

According to economic theory, growth is generated by three factors of production – labour force, capital and technological progress, which are related to a production function. However, taxes can distort the economic decisions of market participants with respect to these factors and thus, can bring challenges to economic growth.A number of analysts have followed, in their works, the effects of different categories of taxes (taxes on labour, capital, consumption and others) on economic growth, trying to establish to what extent they bring their contribution to growth or can have an unfavorable effect.