THE LAFFER CURVE IN TERMS OF TAXATION IN ROMANIA AND IMPLICATIONS OF THE CHOICE OF INCOME TAX PERCENTAGE RATES

Interaction between the way of income taxation and forming the budgetary resources under the impact of the reaction of production factors and implicitly of the evolution of the economy is highlighted and demonstrated by the Laffer Curve, one of the pillars of economic doctrines neoliberal which is based on stimulating the supply effect on economic growth. With this graphical representation that establishes the correlation between the actual fiscal pressure and tax revenue I collected and analyzed for Romania the two areas of the slope, admissible / inadmissible, in which the economy ranged between 1990-2013, especially in the prohibited area. This analysis was right if we consider the fact that large tax practice causes an increasing tax pressure with an emphasized degree of affordability that leads from taxpayers both individuals and companies in evading their tax obligations, generating evasion and tax fraud. Practicing high tax levies determines the state to lose twice: on the one hand to leverage the phenomenon of tax evasion and on the other hand the financial efforts directed to find and catch the tax evaders.