Hassan Tariq

Economics of Taxation

Economics is divided on the subject of taxation and economic growth. According to free-market economics, limiting “the market” through raising taxes is detrimental to economic progress. However, abstract theoretical models do not accurately reflect the real-world economy. These negative growth consequences are frequently not found in empirical research that uses real-world data. Policymakers should reconsider adopting neoclassical economic models to examine tax adjustments because they frequently fail to forecast economic growth patterns appropriately.