The Identification of Optimal Incomes Tax on Growth Goal, Optimal Control Method

Government incomes include tax incomes and non-tax incomes that tax incomes can be considered as a more stable source of in come for government. In each country, tax incomes is regarderd as the basic unit of covering government costsº and developed economies take advantage of this tool to progress and achieve economic growth. In this study, optimal control theory was used to access the amount and the rout of optimal tax incomes to achieve economic growth during 1973-2007. For the analysis, a simultaneous system of general equilibrium of economics was designed and estemated by three stage least squares method (3SLS) using the information of Iran Central Bank time series and yearbook management and planning. Then the route of optimal tax incomes and finally its values were specified by optimal control theory and scenario planning that access to this values is crucial for economic growth. The results suggest a direct relationship between tax incomes and economic growth.