An ekonomcial analysis of income tax tariffs (2003-2020)

Progressive income taxation is used in Turkey. This application has two main advantages and purposes. The tax payment power is determined and vertical tax justice is tried to be realized by progressive income tax. In this study, income tax tariffs for the period of 2003-2020 is analyzed. The success of income tax tariffs in providing vertical justice is examined by average tax rate and marginal tax rate indicators. The findings show that the tariffs are successful in achieving the goal of vertical equity. The results of the length and height differences of the tariffs show that the height difference increased while the height difference was constant during the period. This finding shows that a weak increasing rate tariff is applied. The cyclical flexibility of income tax is 1.60, which means that the increase in income tax revenues is higher than the increase in GDP. This finding is an output of the applied income tax tariffs and is positive in terms of the fact that income tax can function as an automatic stabilization. Real income tax findings calculated using income tax tariffs show that real tax is very stable. Findings show that excluding 2010 and 2011, income tax tariffs are prepared taking into account inflation.