Economic fluctuations and their effects on Gross Income Tax collection in Córdoba (2005-2015)

Abstract

This research analyzes the economic fluctuations and their impact on the Gross Income Tax collection for the period 2005-2015 in the province of Córdoba. For this purpose, the evolution of the collection and the economic fluctuations are analyzed through the evolution of the Gross Geographic Product. The hypothesis of a direct relationship between economic activity and revenue collection was confirmed. Likewise, it was determined that changes in the Gross Geographical Product result in modifications in revenue that persist for four quarters. It was also observed that the predominant factors in the increases in tax collection were the changes in tax rates, inflation and economic activity, which is consistent with what is postulated by the economic theory.