Not a Tax as a Tax: Tax Burden Indicators Revised

Aim of the paper is (1) to verify the effect of different types of taxes on the economic growth in developed countries for time period 2000-2012 using different types of tax burden indicators to (2) show which one is the most suitable in similar analyses. There is an alternative tax burden approximator constructed for OECD countries called Adjusted Tax Quota that is used in empirical analysis, and from a methodological point of view, dynamic panel regression analysis is used. The empirical results show that Adjusted Tax Quota is a suitable approximator and an important alternative to traditional tax quota or the World Tax Index. Furthermore there is confirmed the economic theory showing negative effects of taxation on economic growth and finally also different effects of different types of taxes on economic growth.