The research aims at studying the unemployment and the reasons leading to its emergence in Egypt and its impact on the environment, society and economy. Unemployment is considered a disorder in the environmental system. The research aims to evaluate the tax system in economic and environmental terms by evaluating the Law No. 91 of 2005 and treating distortions to increase the resources of the state. The researchers used the theoretical method in the theoretical framework for research and the descriptive approach in analyzing the data extracted from the records of the Social Fund for Development in Cairo Governorate. The sample of the study On the small and micro projects during the time series from 2010 to 2016. The study was applied to Cairo Governorate, where it represents the largest governorates of the Republic. The study was based on clarifying the extent of correlation between the environmental and economic evaluation of the tax system and unemployment. The researchers reached several results, including: There is a strong and inverse relationship between the economic assessment of the tax system and unemployment. There is a strong relationship between the environmental assessment of the tax system and the unemployment rate. There is an inverse correlation between the number of small enterprises financed by intermediaries and the unemployment rate. There are distortions in some articles of Law 91 of the year 2005 has an impact on the tax revenue and small projects together must be treated. Researchers recommended to study the tax system from the economic and environmental point of view, evaluate and treat distortions as it relates to state revenues and economic development. They also recommend solving tax problems associated with accounting for small businesses. The researchers recommend studying the impact of encouraging small projects and financing them on unemployment as one of the solutions to evaluate the tax system in Egypt.