Tax policy much more complicated - businessman 

ArmInfo.  If we base tax policy not on economic development, but on large tax revenues, we will destroy both the economy and tax revenues. This point of view was expressed  on a social network by the co-founder and head of the Union of  Entrepreneurs Vahram Mirakyan.

. In fact, this is not mathematics, but economics, and in economics, not everything is so simple. For example, you can reduce taxes and increase tax revenues or increase taxes and reduce tax revenues>, - he wrote.

For this reason, he noted, when making calculations in the economy, it is not necessary to make mathematical calculations, it is necessary to understand the economic effect of the steps. For example, Mirakian pointed out, a sharp reduction in corporate income tax in Ireland in the 1990s (to 12.5%) led to the world's largest tech and pharmaceutical companies opening offices there (Apple, Google, Pfizer:), and unemployment fell from double digits to 5%. Tax revenues increased even with the tax cuts, because the economic base  (the size of the economy) grew.

As a result, companies began to reinvest profits within the country: expansion, creation of new jobs.  Investment activity increased. Despite the deferral of tax payments, tax revenues increased>, - Mirakyan continued.

The head of the Union also cites the example of Dubai (UAE), where many free economic zones have been created, where taxes are either absent or very low, depending on the sector (export, innovation, digital services).

, - he wrote.  As Mirakyan pointed out, there are many examples, but the point is that increasing taxes does not equal increasing tax revenues. Often, it is the other way around. In order to increase tax revenues, it is necessary to decrease taxes.

Tax policy is an area that shapes economic policy, so there is no point in turning tax policy development into mathematics, it has nothing to do with mathematics. It is necessary to calculate the economic effect.

I understand that this is a little more complicated than addition and subtraction, but we need to calculate the economic effect.

Finally, the goal of economic and tax policy is economic development, and many tax revenues are a consequence of economic development.

If we base tax policy not on economic development, but on large tax revenues, then we will destroy both the economy and tax revenues," concluded Vahram Mirakyan.