THE INFLUENCE OF SOCIAL CONTRIBUTIONS ON THE ECONOMIC GROWTH

Abstract

One of the most important law regarding taxes that influence the development of the private system is the social contributions law. The evolution of social contributions in Romania shows that its integration in the European Union has not positively influenced these taxes. In this context, the European funds have given a welcomed opportunity for companies to grow their businesses and therefor increase the number of employees but the social contributions along with other taxes are a factor in the slow economic progress. Our analysis shows that there is a growth in the number of employees thus there is an increase in the social contribution. We aim to prove that the state must encourage and support in a grater measure the use of structural funds.

Keywords

• social contributions, taxes, European funds, economic growth, gross minimum wage