Document Type : Research Paper

Author

• Ahamd Chehreghani

Assistant Professor, Department of Economics, Faculty of Economic and Adminstrative Science, Arak University,

Abstract

In macroeconomic literature, taxes are considered the main source of government revenue, and in public sector economics literature, types of taxes and how they affect macroeconomic variables are examined. In the real world, these theories can be implemented and evaluated in countries. Therefore, this article analyzes the effects of taxes on Iranian macroeconomic variables. The research method is quantitative. The results show that with an increase in the value-added tax rate, economic growth increases, but with an increase in the salary and corporate tax rates, economic growth decreases. Also, the effect of an increase in the value-added tax rate on government revenue is greater than that of the other two taxes. Therefore, if the government intends to increase tax rates, the value-added tax has fewer negative effects than the salary and corporate tax and is a priority. Sensitivity analysis shows the high reliability and accuracy of the research model and the reliability of the results.

In macroeconomic literature, taxes are considered the main source of government revenue, and in public sector economics literature, types of taxes and how they affect macroeconomic variables are examined. In the real world, these theories can be implemented and evaluated in countries. Therefore, this article analyzes the effects of taxes on Iranian macroeconomic variables. The research method is quantitative. The results show that with an increase in the value-added tax rate, economic growth increases, but with an increase in the salary and corporate tax rates, economic growth decreases. Also, the effect of an increase in the value-added tax rate on government revenue is greater than that of the other two taxes. Therefore, if the government intends to increase tax rates, the value-added tax has fewer negative effects than the salary and corporate tax and is a priority. Sensitivity analysis shows the high reliability and accuracy of the research model and the reliability of the results.

Keywords

• Value Added Tax
• Payroll Tax
• Corporate Tax
• Economic Growth
• Iran Economy

Main Subjects

• Public sector economy and Fiscal institutions