Minimum living allowance practice and analysing the effects on income redistribution in Turkey

This study analyzes the effects of changes in the Turkish Tax System on income distribution and tax justice for wage earners. The study explains taxation theories, ability-to-pay approach and minimum living allowance concepts theoretically and examines application examples in Turkey. The period between 2008-2015 is evaluated with TURKSTAT data. The study analyzes the history of minimum living allowance application in Turkey, international comparisons, and its effects on income distribution and tax justice. Gini coefficient and difference analysis methods are used in the study. The role and difficulties of minimum living allowance in ensuring tax justice are discussed. As a result, within the scope of the TURKSTAT SLIC research, the family status of households was evaluated in detail within the scope of the study, and as a result of the MLA calculated for those who earn wages, a noticeable improvement was found in the income distribution in 2008 and 2015, and suggestions were presented to increase the effect of the application in this improvement.