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Abstract
It is known the fact that, in Romania, fiscal rules change for about ten times a year and there is obviously a direct perceived and quantifiable effect over business in - centive. This article aims finding if there is a reasonable and quantifiable hidden effect of the fiscal frame changes over the entrepreneurial incentive. The business choice is based on the economic results. For this purpose, the forgotten effects model shall be utilized. This present paper iterates the importance of projecting an investment for a small enterprise in a changing tax frame. It also points to assessing economic profit given the fiscal frequent changes and such, investor's incentive. The author pilot tested a tool in order to be applied to other regions for finding relevant data in what regards the role of the fiscal changes on the way a business is conducted.
Keywords: taxes, fees, SME, fiscal rules, business incentive
Introduction
Law no. 227 from 8th September 2015, published in the Official Gazette on the 10th September 2015 represents the fiscal frame for Romania. It has been changed for 25 times up until now. The former law, 571/22.12.2003 suffered 105 changes during the validation period, starting from the 4th November 2015. The average figures reveal the fact that tax payer's, in Romania, have to deal with 9.12 law's changes each year. That is about 0.76 fiscal changes each month.
Europe's quest for fiscal discipline and national budgetary adjustments represent the main arguments of the legislator for this volatile context. On such uncertain regulatory environment the empirical evidence shows that the behavior of the firms is difficult to describe (Casault, 2017). Taking into consideration that some policies have an insignificant influence on economic figures (Pieroni, 2017), there are still hard empirical evidences that reveal the effect of fiscal policy on economic growth especially in transition and emerging countries (Fetai, 2017). On this macroeconomic scale the results depend on the instrument that has been used. In some cases, there has been revealed that a cut in personal income tax had no effect on the relative prices, the activity levels or the unemployment rate (Campoy-Munoz, 2017).
There are empirical evidences that proves the introduction of an extremely small tax does not affect the aggregate output in...