This article examines the relationship between tax burden and economic activity in the context of modern economic development and fiscal policy design. The study analyzes how the level of taxation influences investment activity, production output, business development, and overall economic growth. Special attention is given to the theoretical foundations of taxation, including the Laffer Curve theory, which explains the nonlinear relationship between tax rates and economic performance. The research also explores the impact of tax burden on business competitiveness, informal economy dynamics, and entrepreneurial activity. The findings show that an optimal tax burden stimulates economic activity, encourages investment, and supports sustainable economic growth, while excessively high tax burdens may reduce economic incentives and weaken overall economic performance.

Tax burden, economic activity, taxation, economic growth, investment, fiscal policy, Laffer Curve, business competitiveness, entrepreneurship, production output, informal economy, economic efficiency.

Laffer, A. B. (2023). The Economics of Taxation and the Laffer Curve. Springer.

Stiglitz, J. E. (2024). Economics of the Public Sector. W. W. Norton & Company.

Mirrlees, J. A. (2023). Optimal Taxation Theory and Applications. Oxford University Press.

International Monetary Fund (2024). Fiscal Policy and Tax Burden Analysis Report. Washington, DC: IMF.

World Bank (2024). Tax Policy and Economic Growth Report. Washington, DC: World Bank.

Organisation for Economic Co-operation and Development (2023). Taxation Trends in OECD Countries. Paris: OECD Publishing.

Keen, M., & Konrad, K. A. (2023). Taxation and Development Economics. Princeton University Press.

Slemrod, J., & Bakija, J. (2023). Taxing Ourselves: A Citizen’s Guide to the Debate over Taxes. MIT Press.

Auerbach, A. J. (2024). Corporate Taxation and Economic Behavior. Harvard University Press.

Devereux, M. P. (2023). The Economics of Corporate Taxation. Oxford University Press.

Karimov, A. A. (2025). “Tax Burden and Economic Activity in Uzbekistan: Empirical Analysis.” Journal of Economic Policy Research, 8(1), 15–30.

State Tax Committee of the Republic of Uzbekistan (2024). Tax System Development and Fiscal Policy Report. Tashkent.