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
Recommended Citation
Ileri, Adem and Derin-Güre, Pinar, "Simulating the Turkish Tax System". Topics in Middle Eastern and North African Economies, electronic journal, 16, Middle East Economic Association and Loyola University Chicago, 2014, http://www.luc.edu/orgs/meea/
Creative Commons License
This work is licensed under a Creative Commons Attribution-Noncommercial-No Derivative Works 3.0 License.
Copyright Statement
© 2014 the authors
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