EFFECTS OF INDIRECT AND DIRECT TAXES INCOME DISTRIBUTION IN TURKEY

Abstract

One of the problems of income distribution in developed or developing countries with the biggest problems of teh economy without distinction, while also emerges as a problem in Turkey. One of the main objectives of the countries is to provide a fair income distribution as possible due to the effects it has on growth, development and the same social welfare. In this study, with the objective of providing justice in income distribution, income in the tax system of the country and the resulting income tax implemented in Turkey it has attempted to explain the impact on the distribution. In the study, tax and income distribution concepts are explained. The study of income distribution and the development process of tax system in Turkey was examined. Finally, indirect and direct tax revenues are analyzed separetelt and the effects on income distribution are tried to be reached. According to the results obtained by Kernel Regression Method; indirect taxes had a negative effect on achieving fairness in income distribution and increased the gini coefficient by %28.1, while direct taxes reduced the gini coefficient by %14.1 and had a positive effect. Therefore, it is understood that the share of direct taxes in tax revenues should be increased in order to ensure equality in income distribution.