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- Title
Artan OranlÜ Gelir Vergisi Tarifesi: Küresel Ekonomide Rekabet Gücü.
- Authors
Karayilmazlar, Ekrem; Kargi, Nihal
- Abstract
In the past 20 years, the world has changed significantly, and so has the global economy. With these fundamental changes comes the demand for a new tax system that meets the needs of the modern company and individual. The three basic measures of a sound tax system are simplicity, efficiency, and equity; none of the current tax system and reform strategies meet all of these tests. The key to the initial popularity of a flat tax is its radical simplicity. It abolishes almost all tax deductions, credits, and exclusions in income taxes. This new system of taxation is gradually replacing outdated, progressive-rate tax systems which discourage the most productive people from working and saving more, and in turn reduce growth. The flat tax has already had remarkable results in Eastern European countries, such as Estonia, Lithuania, Latvia, Russia, and Ukraine. This reform has created a competitive fiscal environment, which encourages investment, risk taking, entrepreneurship and foreign capital inflows and provides increased work incentives. In the present article, after discussing the economic efficiency of progressive tax system, we review experiences of Eastern European countries which have chosen flat-rate taxation model.
- Subjects
PROGRESSIVE taxation; FLAT-rate income tax; INTERNATIONAL competition; INTERNATIONAL economic relations; TAXATION of foreign investments; ECONOMETRIC models of taxation; EUROPEAN communities; TAX reform
- Publication
TISK Academy / TISK Akademi, 2008, Vol 3, Issue 6, p200
- ISSN
1306-6757
- Publication type
Article