Voluntary tax compliance and the citizen well-being: a literature review [Articol]

Abstract

Purpose of the article: This paper aims to review the existing literature on the intricate relationship between taxation, tax evasion, and citizens` well-being. Methodology: The paper employs a comprehensive literature review to analyze various studies that investigate the mechanisms through which tax evasion and undeclared work impact citizens' welfare. Additionally, it assesses the macroeconomic consequences of taxation, specifically linking tax revenues to economic growth and human development, drawing on empirical data from different regions and contexts. Conclusions: The paper fundamentally concludes that taxation holds a pivotal role in sustaining citizens' well- being, although its actual impact i but not limited to, taxpayers' willingness to comply with fiscal obligations. Originality: This article represents an integral component of a larger-scale investigation conducted under the project „Strengthening the socio-economic and legal mechanisms for ensuring the well-being and security of citizens”, CONSEJ 01.05.02. The originality of this research lies in the integration of two distinct yet complementary perspectives: the direct impact of tax evasion and informal work on welfare, and the broader macroeconomic effects of taxation on human development. By examining both micro and macroeconomic dimensions, it provides a holistic view of how taxation affects society.