Topics in Middle Eastern and North African Economies

Document Type

Article

Publication Date

9-1-2014

Abstract

Tax systems are used for economic and social concerns such as promoting the economic growth or decreasing the income inequality and tax evasion, increasing the social welfare, etc. Researchers argue that the consumption taxes are quite high in Turkey compared to other OECD countries. Since, the proposed tax reform in this study decreases the VAT rate to 15 percent and increases the top statutory income tax rate to 40 percent. This paper constructs and present first set of a 55-period overlapping generations (OLG) model for Turkey to analyze and evaluate the impact of tax reform on macroeconomic variables and welfare. The results show that tax reform provides welfare gains to low and middle-income individuals while highincome individuals suffer.

Identifier

2334-282X

Journal Title

Topics in Middle Eastern and North African Economies

ISSN

2334-282X

Publisher

Middle East Economic Association and Loyola University Chicago

Volume

16

Comments

Presentation of the articles in the Topics in Middle Eastern and North African Economies was made possible by a limited license granted to Loyola University Chicago and Middle East Economics Association from the authors who have retained all copyrights in the articles. http://www.luc.edu/orgs/meea/volume16/meea16.htm

Creative Commons License

Creative Commons License
This work is licensed under a Creative Commons Attribution-Noncommercial-No Derivative Works 3.0 License.

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