THE RELATIONSHIP BETWEEN TAX BURDEN AND ECONOMIC ACTIVITY

This article examines the relationship between tax burden and economic activity in the context of modern economic development and fiscal policy design. The study analyzes how the level of taxation influences investment activity, production output, business development, and overall economic growth. Special attention is given to the theoretical foundations of taxation, including the Laffer Curve theory, which explains the nonlinear relationship between tax rates and economic performance. The research also explores the impact of tax burden on business competitiveness, informal economy dynamics, and entrepreneurial activity. The findings show that an optimal tax burden stimulates economic activity, encourages investment, and supports sustainable economic growth, while excessively high tax burdens may reduce economic incentives and weaken overall economic performance.