Income distribution in turkey and calculation of the progressivity of income tax

This thesis aims to analyse the income distribution and the role of taxes in the redistribution of income. For this purpose, Kakinaka-Pereira index was used to test progressivity of income tax and total tax income. The index depends on the relative volatility of tax revenues. The index can be calculated for each type of tax and also provides to evaluate the overall progressivity of the tax system. Progressivity indexes were calculated according to changes in income tax tariffs from 1963 to 2017 by separating seven years periods. It was determined that the Turkish tax system and income tax had progressivity for the majority of the period examined. Also, it was concluded that there was no significant improvement in income distribution although income tax maintained its progressive structure. Keywords: Income Distribution, Income Inequality, Progressivity, Progressivity İndex