Relationship between the tax types according to sources and economic performance

The state needs public revenues to carry out its duties and economic activities. Taxes have an important share in public revenues. Taxes according to sources are; taxes on income, taxes on wealth and taxes on expenditures. The distribution of taxes according to their sources varies in developed and developing countries. In developed countries covering the years 1990-2018 are taxes on income for approximately 34% of total tax revenues and taxes on goods and services accounted for approximately 30% of total tax revenues, social security premium about 26% of total tax revenues, taxes on wealth about 6% of total tax revenues and other taxes 4% of total tax revenues. In developing countries; taxes on goods and services are accounted for 49% of total tax revenues, taxes on income approximately 31% of total tax revenues, social security premium about 15% of total tax revenues, taxes on wealth about 3% of total tax revenues and other taxes are nearly 2% of total tax revenues. In this study, the relationship between tax types and economic performance was investigated by using the Panel-Autoregressive Distributed Lag (ARDL) method. According to the results of Panel-ARDL analysis, it is determined that from basic taxes the tax revenues on income to GDP ratio and tax revenues on wealth to GDP ratio affect GDP per capita in developed countries positively. When subtaxes are analyzed in developed countries, corporate tax revenues to GDP ratio affects economic growth positively; while income tax revenues to GDP ratio and motor vehicles tax revenues to GDP ratio affect GDP per capita negatively. In developed countries income tax revenues to GDP ratio increases final consumption expenditure, while property tax revenues to GDP ratio and motor vehicles tax revenues to GDP ratio decrease final consumption expenditure. Customs and import duties revenues to GDP ratio reduce the inflows of foreign direct investment in developed countries. While customs and import duties revenues to GDP ratio reduce the employment rate, corporate tax revenues to GDP ratio increases the employment rate in developed countries. Motor vehicles tax revenues to GDP ratio decrease the inflation rate, while customs and import duties revenues to GDP ratio increase the inflation rate. While from basic taxes, tax revenues on income to GDP ratio and tax ravenues on goods and services to GDP ratio affect GDP per capita positively; tax revenues on wealth to GDP ratio affect economic growth negatively in developing countries. When subtaxes are analyzed, corporate tax revenues to GDP ratio and social security contributions reveues to GDP ratio increase GDP per capita in developing countries. In developing countries value added tax revenues to GDP ratio decreases final consumption expenditure, while tax revenues on wealth to GDP ratio increase the gross domestic saving rate in developing rate. Corporate tax revenues to GDP ratio and customs and import duties revenues to GDP ratio increase net investment rate in nonfinancial assets in developing countries. In developing countries, corporate tax revenues to GDP ratio increase the inflows of foreign direct investment rate. The income tax revenues to GDP ratio and social security contributions revenues to GDP ratio increase the employment rate in developing countries.