Taxation Impact On Economic Growth In European Union

This paper analyze the economic growth in European Union and the impact of taxation system on it, we analyzed the relation between taxes level and economic growth in the European Union. In the first part, we present theoretical aspects referring to economic growth, European fiscal policies and tables which include tax revenues referring to both direct and indirect taxation, from different countries of EU and some charts which highlight the level of these taxes. We analyze the evolution of the taxation shared in GDP per capita as average indicators in several EU countries and also we compare different taxation systems of countries that use flat level of taxation versus countries that use progressive taxation. In the second part, we created an econometric model established on a simple linear regression, having the dependent variable economic growth and the independent variable as the taxation. In the last part, we indicated this paper’s obtained conclusions.