This document discusses the impact of taxes on economic development. It defines different types of taxes such as corporate tax, goods tax, property tax, income tax, and customs tax. It then examines both the positive and negative effects of taxes. The positive effects include encouraging work, saving, and investment, while reducing budget deficits. The negative effects include reducing investment incentives, lowering human capital formation, and reducing the incentive to work. The conclusion states that while taxes can achieve economic stability, increasing taxes too much can reduce consumption and negatively impact the overall economy.

1. The Impact
Of Taxes
On The Economy
Mohammad Walid 1810340

2. Abstract

3. Introduction
The tax is defined as compulsory financial fees
imposed on individuals, business owners, or
final consumers of the goods of a particular
company, and companies, by a local or
regional government agency, and these fees
are spent to finance public projects in the
country such as works projects, public services,
and building and maintenance of the structure
Infrastructure. Evading the payment of financial
taxes is also considered a crime punishable by
law, since the tax has a role in being a source
of revenue for the state and a source for
improving the economic situation in it.

4. Introduction
2
3
4
5
1
A tax that is imposed at
the corporate level in a
percentage that depends
on the company's
annual profit value.
Corporate tax
A tax imposed on specific
goods and services.
Goods tax
It is a tax imposed
according to the value of
land and property.
Property tax
It is a percentage of
deduction from profits on
an individual level, and is
submitted to the
government.
Income tax
A tax imposed on
imported goods used to
promote projects and
private companies within
the country.
Customs tax

5. The positive effects of the tax on economic development
Encouraging individuals to work, save and invest more.
Reducing the budget deficit in the country.
Helping international governments fulfill their traditional functions of providing some goods and
services. And regulating trade business in a manner that preserves the economy.
Reducing dependence on foreign aid, which is an unstable source of revenue for the country.
Give the government more flexibility to control development work; By designing a schedule that helps improve
the economic environment within it, and setting the appropriate conditions for attracting foreign investments.

6. Negative effects of the tax on economic development
Corporate and shareholder taxes reduce investment incentives and build capital. Which
in turn affects the volume of investment, and consequently a decrease in the number of
productive workers and a decrease in wages.
Higher taxation for lower income earners reduces education revenue; Because high
incomes are linked to higher education levels, this leads to a lower incentive for human
capital formation.
The higher the level of taxation, at the level of personal income, reduces the incentive
to work.

7. Conclusion
Keep in mind that increasing taxes reduces consumption
and thus reduces consumption in the overall economy. The
effect of taxes on consumption is inversely proportional to
the size of income, that is, the larger the size of income,
the more impact the tax will have on consumption. In
general, taxes work to achieve economic stability by
dealing with the recession or dealing with the state of
inflation. In the case of inflation, taxes work to absorb
excess purchasing power, that is, work to reduce total
demand, and this is not done except through increasing
existing taxes or imposing new taxes, and this is
theoretically healthy and does not apply in the case of
Jordan. To increase and create purchasing power.

8. References
William G. Gale ,Andrew A. Samwick (1-2-2016), "Effects of Income Tax
Changes on Economic Growth" ،
www.brookings.edu
01
Ojijo Odhiambo, Oluwatosin Olushola (20-4-2018), "Taxation and
Economic Growth in a Resource-Rich Country: The Case of Nigeria" ،
www.intechopen.com.
02
William McBride, "What Is the Evidence on Taxes and Growth?" ،
www.taxfoundation.org.
03
JULIA KAGAN (26-4-2018), "Taxes" ،
www.investopedia.com.
04

9. Thank you!