Tax Policy for Economic Recovery and Sustainable Development After COVID-19
Tetiana Kaneva
State University of Trade and Economics, Department of Finance, Ukraine (Ukraine)
https://orcid.org/0000-0002-3302-9593
Igor Chugunov
State University of Trade and Economics, Department of Finance, Ukraine (Ukraine)
https://orcid.org/0000-0003-4915-1267
Mykola Pasichnyi
m.pasichnyi@knute.edu.uaState University of Trade and Economics, Department of Finance, Ukraine (Ukraine)
https://orcid.org/0000-0001-7663-776X
Andriy Nikitishin
State University of Trade and Economics, Institute of Trade and Economics, Department of Finance, Vinnytsia, Ukraine (Ukraine)
https://orcid.org/0000-0002-7951-4017
Nataliia Husarevych
State University of Trade and Economics, Department of Finance, Ukraine (Ukraine)
https://orcid.org/0000-0002-8266-8498
Abstract
The optimal taxation level and tax structure depend on numerous factors and enormously differ from country to country. However, the two mentioned tax policy instruments could ensure economic recovery and sustainable economic growth. This article aims to examine the effects of tax policy on economic development and evaluate the role of appropriate tax instruments in speeding up recovery. The results showed that tax level harms the GDP per capita growth rate in Central Europe and Baltic states over the 2000-2021 period. Another vital finding is the increase in both overall employment and investment to GDP ratio positively affected the real GDP per capita growth rates. In order to foster economic growth government might use tax cuts and other stimuli both for distortionary and non-distortionary taxes. The tax policy’s institutional potential should be improved to neutralize the adverse effects of COVID-19 impact and enhance macroeconomic sustainability.
JEL Classification: H20, H21, O23
Keywords:
taxes, fiscal stimulus, COVID-19, employment, economic developmentReferences
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Authors
Tetiana KanevaState University of Trade and Economics, Department of Finance, Ukraine Ukraine
https://orcid.org/0000-0002-3302-9593
Authors
Igor ChugunovState University of Trade and Economics, Department of Finance, Ukraine Ukraine
https://orcid.org/0000-0003-4915-1267
Authors
Mykola Pasichnyim.pasichnyi@knute.edu.ua
State University of Trade and Economics, Department of Finance, Ukraine Ukraine
https://orcid.org/0000-0001-7663-776X
Authors
Andriy NikitishinState University of Trade and Economics, Institute of Trade and Economics, Department of Finance, Vinnytsia, Ukraine Ukraine
https://orcid.org/0000-0002-7951-4017
Authors
Nataliia HusarevychState University of Trade and Economics, Department of Finance, Ukraine Ukraine
https://orcid.org/0000-0002-8266-8498
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