The impact of seperation principle in Turkish income tax system on income distribution

The final form of the seperation principle implemented in Turkey since 2010, is a technique used to achieve the ability to pay of the taxpayer on the income tax rates. The separation principle, which expresses that the wage earnings are taxed differently according to the wage and non-wage income and earnings, is applied by changing the tax base in the income tax statement for the wage gains in the Turkish tax system. To ensure the fair distribution of the tax burden expressed in the Constitution of the Republic of Turkey and the principle of separation advantage in labor factor is important how much tax revenue has reached this goal. In order to determine this, the effect of the direct separation principle on wage earnings is examined, unlike other studies in the literature which include an analysis of the effects of income on income distribution in this study. This study, which differs in the literature from the point of not finding a study that examines the effect of the separation principle on the wage, aims to reveal to what extent the tax justice stated in the Constitution on the wage ear is really achieved. How the income tax burden on the wage earnings changes the result of the application of the separation principle The TÜİK Income and Living Conditions Survey was examined through the Panel Data Set 2012 and the Cross Section Data Set applied between 2009 - 2012 and analyzed by using percent share analysis and gini indices which measures income distribution inequality.