The Evaluation of the Impact of Income Tax on Economic Growth and Development in the Islamic Republic of Iran during 1971-2006

ABSTRACT: The main objective of this study is to evaluate the effect of income tax on economic growth and the development in the Islamic Republic of Iran between 1971-2006. In the present study the hypothesis such as advanced statistical methods like linear regression, VAR and ECM methods were used. Co-integration tests for long-term equilibrium relationship between the variables were used. To determine the option lag length for the model Schwarz Bayesian Criterion (SBC) have been used and the length of intervals in rows 2 and number 71.71521* were obtained. Long-term results of the co-integration test, the first long-term relationship, a long-term equilibrium current pay and exogenous variables. A relationship is a long-term. Payment of development and external variables. Stimulation response functions were obtained. We can get conclusion that most of the effect were on the income tax: their tax revenue (IRFs), current payments, payment of construction, general index (the price of consumer goods and services), and the economic growth rate leaves.

Taxation, Economic Growth, Economic Development, GDP Growth