Analysis of Taxation in Romania Using Laffer Curve, 1990-2012

Abstract

Fiscal policy offers the Member States of the European Union, and in particular the countries that have adopted the common currency, an important tool in influencing economic activity and, we could say, the only one that remained available for the governments of these economies after the unification of monetary policy. Through taxes and budgetary expenditures used as economic levers, tax policy can have a contractible or expansionary effect on the national economy. From our point of view, the Laffer curve, applied by its simplicity, is a tool that allows the analysis of tax impacts.