A negative income tax centered comparison of zekâh with modern tax theory

Zakat, tax and negative income tax are interrelated concepts in terms of their functions, principles and elements. In addition, most of the services provided to the poor and needy, such as health, education and social security, are among the expenditure items of both zakat and negative income tax. In our study, it has been aimed to interpret these issues by using classical and current sources. It has been emphasized that zakat and negative income tax contribute to overcoming the difficulties in income distribution contemporary economic systems face, to struggling against poverty, and to a fair income distribution. In this context, the similar and different aspects of zakat and negative income tax in terms of basic principles and principles have been analysed. It is a well-known fact that zakat is one of the most important sources of income that is collected by the state and distributed to the fields mentioned in the verse from the initial legislation process to the Umayyad and Abbasid periods. However, the classification of the goods included in zakat system as exoteric and esoteric and allowing zakat payer to decide where to give the zakat of esoteric goods turned out to be a breaking point resulting in state's gradually losing the control over the zakat system and eventually zakat paying became a voluntary financial aid. This prepared the ground for zakat payers to act freely in whether to distribute their zakat or not. In later periods, the distribution of zakat was left entirely to the will and conscience of the zakat payer as it is today. In this study, a new model has been proposed by emphasizing the importance of institutionalization of zakat in Turkey as it was in the first periods. With this proposed model, it is aimed to enable wider masses to share the existing zakat potential with a systematic organization. Thus, the zakat will play a more effective role in reducing the income gap between the rich and the poor and in combating poverty. In addition, if the zakat is organized by the state, it will be possible for those employed to administer the funds, those whose hearts have been recently reconciled to Truth, those in the Cause of Allah, and the wayfarers to receive shares from the distributed zakat. Key Words: Zakat, Tax, Negative Income Tax, Institutionalization, Social Security.