Stoyan Tanchev
Martina Yakova


The study analyzes the tax systems of Bulgaria, Greece, Hungary, Spain, Portugal, Germany, France, Belgium, the Netherlands and Austria in terms of consumption and hybrid tax system for the period 2003 - 2014.
The results show that in countries with consumption and hybrid tax system where economic growth is registered, taxes form up the necessary fiscal revenue in the budget. In times of crisis tax revenue are insufficient and a budget deficit is established. There are prerequisites for increasing the national debt due to the decreased revenue. In terms of crisis, in countries with a consumption tax system, the government debt is part of the expenditure policy of the parties. In countries with a hybrid tax system, debt has no such effect. The results establish a positive relationship between economic growth and government expenditure and negative between growth and tax revenues in both types of tax systems. For the analysis we have used econometric methods of multifactorial linear regression, including dummy variable (OLS with dummy variable) and Two-Stage Least Squares method (TSLS).

Key words

Direct taxes; Government expenditure; Government debt; Economic growth.

JEL Codes: H24, H25, H63


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