The role of individual income tax in income redistribution: the case of Turkey

Income distribution, in general, refers to how and in what amount the national income generated in a society in a given period is distributed among individuals in that society. Income distribution is one of the fundamental economic and social problems that almost all economic thought schools have paid attention and have suggested how it should be. Therefore, from the past till today, many theories have been put forth on income distribution regarded as an important economic and social issue.Today, income distribution is still an important problem that countries try to find a solution. Therefore, countries have tried to found solution to income distribution as to their economic systems and their development levels. Generally, income distribution problem is tried to be solved within the framework of the views market distribution is just or not just. Therefore, according to the view stating market distribution is just implies that government either should not intervene in income distribution or should intervene in a limited way. On the other hand, the view stating market distribution is not just signifies that just income government distribution requires government intervention.This study examines the issue from the point of view of government intervention and searches the role can be played by individual income tax, regarded an intervention instrument in public finance literature. In the first part, income distribution is examined on theoretical grounds, the reasons of unjust income distribution are conveyed and the fundamental intervention instruments are examined. In the second part, the theoretical structure of individual income tax and its role in just income distribution are analyzed. In the third part, the role of individual income tax in income redistribution is searched with special reference to the Turkish individual income tax.