Taxes and Economic Development in Indonesia
English
Keywords:
Information Technology,Education,Economic Growth,Indonesia.Abstract
This study investigates tax revenues, economic growth and government spending in Indonesia.This research examines data from 2000 to 2020 in order to produce "autoregressive vectors" that may be used to assess the causal link between variables. Based on secondary data from the World Bank, the following multivariate regression model was used to investigate the causal link between tax collections, economic growth, and government expenditure in Indonesia. We found that state revenues from taxes have a significant impact on economic growth and government spending. Tax payments from citizens contribute to economic growth and also government spending that triggers economic growth. Taxes are a way to distribute wealth and promote economic development. This proves that paying taxes is an important thing that must be done by citizens.
