The Impact of Tax Compliance on the Global Economy
- Post by: airjournals
- August 31, 2019
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Annor, A. S.
ABSTRACT
This study aimed to analyze the correlation between tax compliance and global economic performance, focusing specifically on how revenue is mobilized, macroeconomic stability is achieved, and both financial and social equity are maintained. The study took on a multi-dimensional methodological approach to analyze political institutions, empirical findings, and proposed theories from public finance, development economics, and political economy. The study utilized a mix of country-to-country, macro development, and micro compliance, behavioral and experimental tax compliance, and development of financial institutions to conclude that there is no single obstacle to achieving effective revenue mobilization. Governments are fiscally capable of financing public goods and stabilizing a country’s reliance on borrowing (Andreoni, Erard, and Feinstein 1998; Besley and Persson 2014). Increased growth and economic inclusion are also a product of higher compliance (IMF 2018; Slemrod 2019). The studies also concluded that tax compliance on the social economic contract strengthens the social contract gained from the state (Torgler 2007). This study concluded that an increase in tax compliance is not a straightforward administrative problem, but stems from the need to restructure the global economy.
Keywords: Tax Compliance; Global Economic Performance; Revenue Mobilization
Citations – APA
| Annor, A. S. (2019). The Impact of Tax Compliance on the Global Economy. Global Journal of Auditing and Finance, 1(2), 1-17. 10.5281/zenodo.18246422 |