Laffer taxation rate: estimations for Romania's case
Laffer taxation rate: estimations for Romania's case
Author(s): Elena Pădurean, Andreea Stoian, Emilia CâmpeanuSubject(s): Transformation Period (1990 - 2010), Public Finances, Fiscal Politics / Budgeting
Published by: Editura Universităţii »Alexandru Ioan Cuza« din Iaşi
Keywords: Laffer curve; taxation rate; tax evasion; implicit taxation rate;
Summary/Abstract: The relationship between taxation rate and tax revenues for the public budget has generated an important debate aiming that level of taxation rate that maximizes tax revenues collected for the public budget. Laffer curve involves the existence of a strong correlation between taxation rate and tax revenues. The aim of this paper is to estimate a Laffer taxation rate for Romania’s case using annual data over the period 1990-2008. The main findings highlight that a taxation rate higher than 28% could diminish tax revenue for the public budget, in addition, taxation rates were situated slightly on the prohibitive area of Laffer curve.
Journal: Analele Ştiinţifice ale Universităţii »Alexandru Ioan Cuza« din Iaşi. Ştiinţe economice
- Issue Year: 58/2011
- Issue No: Spec
- Page Range: 183-189
- Page Count: 7
- Language: English