The effect of tax revenues on national income in OECD countries: Panel data analysis

Increases in the production of goods and services in a country over a certain period of time are referred to as economic growth. The net value of goods and services produced in a country in a certain period is defined as national income. In order to reach the net value, it is necessary to subtract the indirect taxes provided for that economy from the gross national product value for a certain period. The subject of this study is to analyze the tax structure of OECD countries and to investigate their contributions to the economy. The aim of the study is to look at the weight of direct and indirect taxes in OECD countries analyzed in terms of fairness and to measure the level of contribution of the taxes collected to economic growth in this context. In this context, 32 OECD countries whose data are available for the analysis part are analyzed for the period 1995-2019. According to the results obtained in the study investigating the effects of taxes on economic growth and national income in OECD countries, the study is important in terms of indicating the necessity to continue the tax policies being implemented or to make policy changes. In the first part of the study, the theoretical framework of taxation and its economic effects are defined in general terms. In the second part of the study, the tax types and tax rates of Greece and the United States, the countries with the highest budget deficit as a percentage of national income, and Norway and Korea, the countries with budget surpluses as a percentage of national income, are analyzed in detail and a comparison is made with Turkey through tables and graphs. In the third part of the study, an econometric analysis of the effect of taxes on national income in OECD countries is made. According to the results obtained, when the OECD countries analyzed as a whole are evaluated, it is concluded that the effects of income tax, corporate tax and total taxes on national income are positive and significant.