A TAX REFORM PROPOSAL FOR TURKEY: FLAT TAX SYSTEM

ÖZGÜN B., DERİN GÜRE P.

Ekonomik Yaklaşım, cilt.31, sa.117, ss.417-443, 2020 (Hakemli Dergi)

  • Yayın Türü: Makale / Tam Makale
  • Cilt numarası: 31 Sayı: 117
  • Basım Tarihi: 2020
  • Doi Numarası: 10.5455/ey.17301
  • Dergi Adı: Ekonomik Yaklaşım
  • Derginin Tarandığı İndeksler: TR DİZİN (ULAKBİM)
  • Sayfa Sayıları: ss.417-443
  • Orta Doğu Teknik Üniversitesi Adresli: Evet

Özet

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.