Inflation and Cold Progression: An Analysis of Turkish Income Tax between 2006-2021
Yükleniyor...
Dosyalar
Tarih
2023
Yazarlar
Dergi Başlığı
Dergi ISSN
Cilt Başlığı
Yayıncı
Sosyoekonomi Soc
Erişim Hakkı
info:eu-repo/semantics/openAccess
Özet
Inflation causes high taxation-although real income does not increase-because the income tax base targets nominal income. This situation results in taxation as if the ability to pay has increased, although it has not. Compensation for this deflecting effect of inflation in the income tax tariff requires growing the income segments included in the tariff at the rate of inflation regularly experienced yearly. However, the current need for public revenue can cause governments to make regulations in favour of the administration and against taxpayers-almost by creating an undervaluation-while providing this requirement. It is called cold progression in the literature. In this study, which draws attention to the distortions caused by inflation in the tax system, the evidence obtained shows the existence of cold progression.
Açıklama
Anahtar Kelimeler
Inflation, Personal Income Tax, Cold Progression, Inflation Tax, Taxation
Kaynak
Sosyoekonomi
WoS Q Değeri
N/A
Scopus Q Değeri
N/A
Cilt
31
Sayı
55
