THE INCOME TAX BRACKET CREEP IN THE LOW INFLATION PERIOD: A REVIEW ON TURKISH CASE (2006-2019)

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Atıf İçin Kopyala

NACAR KARABACAK B., KARABACAK Y., Icmen M.

JOURNAL OF MEHMET AKIF ERSOY UNIVERSITY ECONOMICS AND ADMINISTRATIVE SCIENCES FACULTY, cilt.8, sa.2, ss.984-1007, 2021 (ESCI)

• Yayın Türü: Makale / Tam Makale
• Cilt numarası: 8 Sayı: 2
• Basım Tarihi: 2021
• Doi Numarası: 10.30798/makuiibf.859659
• Dergi Adı: JOURNAL OF MEHMET AKIF ERSOY UNIVERSITY ECONOMICS AND ADMINISTRATIVE SCIENCES FACULTY
• Derginin Tarandığı İndeksler: Emerging Sources Citation Index (ESCI)
• Sayfa Sayıları: ss.984-1007
• Anahtar Kelimeler: Bracket Creep, Fiscal Drag, Progressive Income Taxation, Inflation, TAXATION
• Akdeniz Üniversitesi Adresli: Evet

Özet

In this study, we research bracket creep in the context of individual income tax. We aim to find out whether the bracket creep occurred or not in the application of income tax in Turkey. The findings show that bracket creep took place in both narrow and broader sense of the term between the years 2006-2019 in Turkey. The reason for the bracket creep in a narrow sense is that individual income tax tariff slices are not indexed sufficiently according to the changes on the general level of prices. On the other hand, the reason for the bracket creep in a broad sense stems from the narrowing of the income tax tariff slice lengths by prioritizing the fiscal purpose of taxation..