Abstract:

In this study, by taking the current tax application used in the taxation of wages, the social state, financial power and separation principles into account suggestions based on the reflection of the tax burden between the production factors, optimality, applications covering all taxpayers, and the introduction of new criteria have been developed. The aim of the study is to determine the principles to be taken into account in order to make an effective and fair taxation while taxing wage earnings and to reveal the relationship between taxed wages and tax revenues. In this context, in this study the Spearman Rank Correlation model was used to determine the relationship with tax revenues of other taxes and taxes obtained from wage earners through the annual data for the period 2006-2018. Considering systems used in the taxation of wages in this empirical study conducted, according to the correlation and partial correlation results, there is a strong relationship between total tax revenues and bank and the tax on insurance transactions income tax, wage earners’ tax, corporate tax, value added tax, special consumption tax, private communication tax, motor vehicle tax, stamp duty, dues and bank and insurance transactions tax. The effect of value added tax and banking and insurance transactions tax is relatively low while the effect of special communication tax on tax revenues has a low correlation. According to the partial correlation result, on the other hand, the effect of taxes taken from wage earners on total tax revenues resulted in a moderate correlation. There was also a moderate correlation between the taxes obtained from wage earners and income tax. However, according to the Spearman rank correlation result, it has been observed that the relationship between them was at a positive perfect level.

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