The social aspect of fiscal policy in reducing income inequality: The implementation negative income tax

This study provides a comprehensive analysis of the concept of social welfare and the welfare state perspective, focusing on the social aspects of fiscal policies and income distribution justice. In the first chapter, the historical development and fundamental characteristics of the concepts of social welfare and the welfare state are explained. The impact of the welfare state on individuals, economic systems, and order is examined, while liberal, Benthamite, and Rawlsian approaches to social welfare are compared. Additionally, social welfare criteria such as Pigou optimality, Pareto optimality, and Bergson's social welfare function are evaluated, and conservative, social-democratic, and liberal welfare state models are analyzed. The second chapter focuses on the social functions of fiscal policies and income distribution justice. The concept of income distribution is discussed in the contexts of functional, sectoral, regional, and personal income distribution. Tools used to measure inequality, such as the Gini coefficient, Lorenz curve, and income share percentages, are analyzed. Furthermore, the effects of taxes—including income, wealth, and social security taxes—on income inequality are examined in detail. The third chapter explores the theory of negative income tax and its applications in Turkey. This system, aimed at providing direct support to low-income individuals, is evaluated as an effective tool in combating poverty. Theoretical approaches by economists such as Friedman, Tobin, and Ripon are discussed, highlighting the advantages and disadvantages of the negative income tax. Specific practices in Turkey, educational assistance, healthcare assistance, disability pensions, and home care allowances, are thoroughly analyzed. In conclusion, the study combines the theoretical framework of social welfare and welfare state policies with the practical applications of negative income tax, emphasizing the critical role of these policies in achieving social justice and economic equality.