A TAX REFORM PROPOSAL FOR TURKEY: FLAT TAX SYSTEM


Derin Güre P.

Ekonomik Yaklaşım, vol.31, no.117, pp.417-443, 2020 (National Refreed University Journal)

  • Publication Type: Article / Article
  • Volume: 31 Issue: 117
  • Publication Date: 2020
  • Doi Number: 10.5455/ey.17301
  • Title of Journal : Ekonomik Yaklaşım
  • Page Numbers: pp.417-443

Abstract

Using a dynamic life cycle simulation model, this study aims to find macroeconomic effects of a flat tax reform for Turkish economy. Flat tax system removes all current tax rates and taxes all sources of income at the same rate by expensing the invest- ments in the year they are made. Although this is a simple tax system, the model projects significant increase in output as well as an increase in welfare by shifting from the graduated tax system to the flat tax.