Minimum wage policies are among important tools in struggle against unemployment and poverty. However, in many cases, the income tax on minimum wage which itself is well below the poverty line and the other fiscal burdens reduce the functionality of minimum wage. As a result of the the minimum wage allowance practice of Turkey, income tax burden on the worker who earn minimum wage reduces about 40 percent. However the fiscal burden on minimum wage are still above 20 percent. When we take into account the poverty line, even the gross minimum wage is not enough for compensating the necessary needs of minimum wage worker or his or her family. While this is the case, the practice of putting some fiscal burdens on the minimum wage demages the legitimacy of the state. Because of these, in such a period in which government has some attempts for reforming tax system, the main task of responsible administration may be to design a minimum wage and tax system which is compatitibel with equaltiy principle.
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