The proposed analysis: Fiscal Policy and Stability with a sample of 60 countries around the world during the period 2002 to 2008, helps to make distinctions between the political instability experienced but maintained high taxation, and those states with political stability but low taxation. The few variables used in the model and its reduction to a bidirectional relationship are one of its merits, when compared with other models used in similar studies. The model also contains a simple explanation for a complex problem: measuring fiscal power and its relationship to political stability, and vice versa, measuring political stability based on taxation. The results of the model are not linear, but rather its variables: (Taxes, PS, GE, FC and GDP) are involved in the system with a relative weight. In any case, it emerges that the one-to-one relationship between taxation and political stability depends on the institutional framework and the type of government. Political stability can be a good indicator of fiscal stability, although it is not the only key factor. It is possible to suggest on the basis of these results that political and institutional stability determines the conditions of economic risk and civil war, inter-party divisions and violent conflicts, so typical in countries with political instability.Literary reviewPaul Collier and Anke Hoeffler (2009a, 2009b, 2004) presented arguments to quantitatively evaluate the causes of political instability and civil wars. Its central hypothesis is that economic opportunities are the main cause of civil wars. Democracies born in conditions dangerous for the resumption of armed conflicts, as also underlined by James Fearon and David Laitin (2003), in some cases are political...... middle of paper……me, the model also suggests that the process of tax reform can often contain political instability. Previous research has shown that transitions to democracy often pass through intermediate regimes (Collier, Pzevorski). This work has shown that various types of political instability can occur, partial democracies with low or high income tax systems. In most unstable political regimes, low fiscal risk is evident. Taxation, as noted, can have indirect relationships with political instability in complex regimes. In any case, when institutions are subordinated to radical struggles between factions or political parties, the tax risks being impious on the part of taxpayers or sensors are installed in the revenue, ready to devour the budget. Thus, adjustments made to the effects of fiscal policy are not always assertive on overall public spending policies.