Corporate income tax and economic growth: empirical evidence from the European Union

The subject of this research is the relationship between corporate income tax and economic growth in European Union countries. Given that corporate income tax is often considered one of the most harmful tax forms for economic development, this study aims to examine its effects on GDP growth. The research investigates both the theoretical foundations and empirical evidence regarding the influence of corporate taxation on economic activity. The main objective of the study is to determine whether corporate income tax has a positive or negative impact on economic growth. Using statistical and econometric analyses based on data from EU member states for the period 2000–2020, the study evaluates the interdependence between corporate income tax revenues and GDP growth rates. The findings indicate a mixed effect: while in some countries corporate income tax negatively correlates with economic growth, in others, a positive relationship is observed, suggesting that well-structured tax policies can contribute to economic stability and development. The results of this research can be useful for policymakers in designing more effective corporate taxation policies that support economic growth while maintaining fiscal sustainability.