The evaluation of tax cuts policy in context of globalization and market economy: A sample of Turkish tax system

The supporters of Supply-side economics argue that tax reductions will increase production and tax revenues.The American economist Laffer who put forward the tax cut policiy as a remedy to the problems the demand-side economics face drew a graph that explains the correlation between the tax income and the tax rates. This graph, known as the Laffer curve has been the most important notion for Supply-side economics.With this research it's aimed to explain the tax reduction policies and their effects on countries' economies. for this purpose, first of all, the tax cuts some chosen countries in the world have adopted have been examined,and afterwards the tax cut policies applied in Turkey have been emphasized.As a result it's seen that tax reductionist policies increase both production and tax revenues. Therefore, it accompanies the economic growth and the employment increase.Keywords: Tax, Tax Cuts, Supply-side Economics, Laffer Curve