Can Tax Policy Contribute to the Crisis?

The discussion about causes of financial and economic crisis has focused also on tax consequences and measures. Taxes have not generated the crisis, but some aspects of tax policy may have led to increased risk-taking and indebtedness of banks, households and companies. The aim of the paper is to review main channels through which the tax policy can affect financial markets and financial stability. Attention is focused on taxation of financial institutions, tax reliefs for housing and for capital gains, tax preference for corporate debt financing. The paper examines last development and also current regulation and tax measures realized by national policymakers and European Commission with the goal to avoid future crises. The paper employs standard methods of scientific paper; mainly the method of description and comparative analysis.