FISCAL ILLUSION – AN ACTUAL PERSPECTIVE

Abstract

The ongoing pro-development strategies that countries are promoting in the current era are based on the idea of finding as much public financial resources as possible to cover the growing financial needs. The more citizens understand less the financial / tax-related changes, the more they will transfer a larger part of their income or wealth to the state. This creates the phenomenon of "tax illusion" first developed by Italian economist Amilcare Puviani in 1903.

Keywords

• fiscal illusion
• fiscal sociology
• fiscal policy