A Tax reform proposal for Turkey: flat tax system /

Özgün, Burcu
This study compares the macroeconomic and welfare e ffects of a fundemantal tax reform, that is fl at tax system for the Turkish case by using a dynamic life-cycle simulation model. Flat tax system removes all current tax rates and taxes all sources of income at the same rate by expensing the investments at the year they are made. The model projects signi ficant increase in output by shifting from the current graduated tax system to the flat tax; as well as an increase in welfare.