TY  - JOUR
T1  - THE CORPORATE INCOME TAX RATE MAXIMIZING TAX REVENUES AND MARKET OUTPUT: EMPIRICAL EVIDENCE FROM THE UNITED KINGDOM, THE UNITED STATES, AND TÜRKİYE
TT  - VERGI GELİRLERİNİ VE PİYASA ÜRETİMİNİ MAKSİMİZE EDEN KURUMLAR VERGİSİ ORANI: BİRLEŞİK KRALLIK, AMERİKA BİRLEŞİK DEVLETLERİ VE TÜRKİYE’DEN AMPİRİK KANITLAR
AU  - Balkı, Ali
PY  - 2025
DA  - September
Y2  - 2025
DO  - 10.17130/ijmeb.1654750
JF  - Uluslararası Yönetim İktisat ve İşletme Dergisi
JO  - ijmeb
PB  - Zonguldak Bulent Ecevit University
WT  - DergiPark
SN  - 2147-9208
SP  - 1000
EP  - 1016
VL  - 21
IS  - 3
LA  - en
AB  - This study estimates the corporate income tax rate that maximizes tax revenues and market output for the United Kingdom, the United States, and Türkiye using annual data from 1986-2021. The analysis conducted through the Augmented ARDL method shows a parabolic relationship between tax revenues and the corporate income tax rate in all three countries. There is a parabolic relationship between market output and the corporate income tax rate only in the United Kingdom. The optimal corporate income tax rate that maximizes market output in the United Kingdom is 22%, while the optimal corporate income tax rate for tax revenues is 32%. The optimal corporate income tax rate that maximizes tax revenues in the United States is 43%, while the optimal corporate income tax rate for tax revenues in Türkiye is 25%. Since the current corporate income tax rate in the United Kingdom is 25%, the government can increase this rate to increase tax revenues. The current corporate income tax rate in the United States (21%) is well below the optimal rate. The government has a wide maneuverable area to increase tax revenues. Türkiye's current corporate income tax rate (25%) equals the optimal rate. This situation shows that Türkiye attaches more importance to tax revenues than the other two countries.
KW  - Optimal Tax Rate
KW  - Corporate Income Tax
KW  - Khaldun-Laffer Curve
KW  - Tax Revenue
KW  - Market Output.
N2  - Bu çalışma, 1986-2021 dönemine ait yıllık verileri kullanarak vergi gelirlerini ve piyasa üretimini maksimize eden kurumlar vergisi oranını Birleşik Krallık, Amerika Birleşik Devletleri ve Türkiye için tahmin etmektedir. Genişletilmiş ARDL yöntemi aracılığıyla yapılan analizde, üç ülkede de vergi gelirleri ile kurumlar vergisi oranı arasında parabolik bir ilişki vardır. Piyasa üretimi ile kurumlar vergisi oranı arasında ise sadece Birleşik Krallık’ta parabolik ilişki vardır. Birleşik Krallık’ta piyasa üretimini maksimize eden optimal kurumlar vergisi oranı %22, vergi gelirlerinde ise optimal kurumlar vergisi oranı %32’dir. Amerika Birleşik Devletleri’nde vergi gelirlerini maksimize eden optimal kurumlar vergisi oranı %43, Türkiye’de ise vergi gelirleri için optimal kurumlar vergisi oranı %25’tir. Birleşik Krallık’ta güncel kurumlar vergisi oranı %25 olduğu için hükümet vergi gelirlerini artırmak amacıyla bu oranı artırabilir. Amerika Birleşik Devletleri’nde güncel kurumlar vergisi oranı (%21) optimal oranın oldukça altındadır. Hükümetin vergi gelirlerini artırmak için geniş bir manevra alanı bulunmaktadır. Türkiye’de ise güncel kurumlar vergisi oranı (%25), optimal orana eşittir. Bu durum, Türkiye’nin diğer iki ülkeye göre vergi gelirlerine daha fazla önem verdiğini göstermektedir.
CR  - Adams, R. D. (1981). Tax rates and tax collections: the basic analytics of Khaldun-Laffer curves. Public Finance Quarterly, 9(4), 415-430. https://doi.org/10.1177/109114218100900403
CR  - Aktan, C. C. (1989). The Khaldun-Laffer effect of supply-side economics. Dokuz Eylül Üniversitesi İİBF Dergisi, 4(1-2), 190-206.
CR  - Bender, B. (1984). An analysis of the Laffer curve. Economic Inquiry, 22(3), 414-420. https://doi.org/10.1111/j.1465-7295.1984.tb00695.x
CR  - Blinder, A. S. (1981). Thoughts on the Laffer curve. In The supply-side effects of economic policy (pp. 81-92). Dordrecht: Springer Netherlands.
CR  - Brill, A., & Hassett, K. A. (2007). Revenue-maximizing corporate income taxes: the Laffer Curve in OECD countries. American Enterprise Institute for Public Policy Working Paper No. 137.
CR  - Browning, E. K. (1989). Elasticities, tax rates, and tax revenue. National Tax Journal, 42(1), 45-58. https://doi.org/10.1086/NTJ41788772
CR  - Canto, V. A., Joines, D. H., & Laffer, A. B. (1981). Tax rates, factor employment, and market production. In The supply-side effects of economic policy (pp. 3-32). Dordrecht: Springer Netherlands.
CR  - Clausing, K. A. (2007). Corporate tax revenues in OECD countries. International tax and public finance, 14, 115-133. https://doi.org/10.1007/s10797-006-7983-2
CR  - De Oliveira, F. G., & Costa, L. (2015). The VAT Laffer curve and the business cycle in the EU27: an empirical approach. Economic issues, 20(Part 2), 29-44.
CR  - Devereux, M. P. (2007). Developments in the Taxation of Corporate Profit in the OECD since 1965: Rates, Bases and Revenues. Oxford University Centre for Business Taxation Working Paper Series, No. WP, 7(04), 2007.
CR  - Dupuit, J. (1844). On the measurement of the utility of public works. International Economic Papers, 2(1952), 83-110.
CR  - Ferreira‐Lopes, A., Martins, L. F., & Espanhol, R. (2020). The relationship between tax rates and tax revenues in eurozone member countries‐exploring the Laffer curve. Bulletin of Economic Research, 72(2), 121-145. https://doi.org/10.1111/boer.12211
CR  - Fullerton, D. (1982). On the possibility of an inverse relationship between tax rates and government revenues. Journal of Public Economics, 19(1), 3-22. https://doi.org/10.1016/0047-2727(82)90049-4
CR  - Göksu, S. (2023). Yatırım harcamaları ve dış ticaretin sigortacılık sektörü üzerindeki rolü: Türkiye’den ampirik kanıtlar. Gazi İktisat ve İşletme Dergisi, 9(3), 380-393. https://doi.org/10.30855/gjeb.2023.9.3.009
CR  - Gupta, H., & Gupta, M. (2019). Direct Tax and Laffer Curve. ANVESHAK-International Journal of Management, 8(2), 41-56. https://doi.org/10.15410/aijm/2019/v8i2/145177
CR  - Hájek, J., Safr, K., Rotschedl, J., & Cadil, J. (2021). The Laffer Curve Decomposed 1. Ekonomicky Casopis, 69(3), 306-326. https://doi.org/10.31577/ekoncas.2021.03.05
CR  - Hiraga, K., & Nutahara, K. (2017). Can the Laffer Curve for Consumption Tax Be Hump-Shaped?, CIGS Working Paper, No. 16-002E.
CR  - Hsing, Y. (1996). Estimating the Laffer curve and policy implications. The Journal of Socio-Economics, 25(3), 395-401. https://doi.org/10.1016/S1053-5357(96)90013-X
CR  - Hume, D. (1955). Writings on economics. Madison: University of Wisconsin Press.
CR  - Karas, M. (2012). Tax rate to maximize the revenue: Laffer curve for the Czech Republic. Acta Universitatis Agriculturae et Silviculturae Mendelianae Brunensis, 60(4), 189-194.
CR  - Kawano, L., & Slemrod, J. (2012). The effect of tax rates and tax bases on corporate tax revenues: Estimates with new measures of the corporate tax base. National Bureau of Economic Research Working Paper, No. w18440.
CR  - Khaldun, I. (1377). The Muqaddimah: An Introduction to History (F. Rosenthal, Translated). Princeton/Bollingen: Princeton NJ.
CR  - Krause, A. (2009). A general equilibrium analysis of the Laffer argument. Social Choice and Welfare, 33, 601-615. https://doi.org/10.1007/s00355-009-0381-9
CR  - Laffer, A. B. (2004). The Laffer curve: Past, present, and future. Backgrounder, 1765(1), 1-16.
CR  - Lee, J., & Strazicich, M. C. (2003). Minimum lagrange multiplier unit root test with two structural breaks. Review of Economics and Statistics, 85(4), 1082-1089. https://doi.org/10.1162/003465303772815961
CR  - Liapis, K. J., Politis, E. D., Ntertsou, D., & Thalassinos, E. I. (2020). Investigating the relationship between tax revenues and tax ratios: An empirical research for selected OECD countries. International Journal of Economics and Business Administration, 8(1), 215-229.
CR  - Lin, B., & Jia, Z. (2019). Tax rate, government revenue and economic performance: A perspective of Laffer curve. China Economic Review, 56, 101307. https://doi.org/10.1016/j.chieco.2019.101307
CR  - Matthews, K. (2003). VAT evasion and VAT avoidance: Is there a European Laffer curve for VAT?. International Review of Applied Economics, 17(1), 105-114. https://doi.org/10.1080/713673162
CR  - McNown, R., Sam, C. Y., & Goh, S. K. (2018). Bootstrapping the autoregressive distributed lag test for cointegration. Applied Economics, 50(13), 1509-1521. https://doi.org/10.1080/00036846.2017.1366643
CR  - Menichini, A. A. (2020). How do firm characteristics affect the corporate income tax revenue?. International Review of Economics & Finance, 65, 146-162. https://doi.org/10.1016/j.iref.2019.10.004
CR  - Miravete, E. J., Seim, K., & Thurk, J. (2018). Market power and the Laffer curve. Econometrica, 86(5), 1651-1687. https://doi.org/10.3982/ECTA12307
CR  - Mohamed Nor, N., Raja Abdullah, N. M., Rampal, L., & Mohd Noor, Z. (2013). An Optimal Cigarette Tax in Malaysia. International Journal of Economics & Management, 7(2), 205-220.
CR  - Narayan, P. K. (2005). The saving and investment nexus for China: Evidence from cointegration tests. Applied Economics, 37(17), 1979-1990. https://doi.org/10.1080/00036840500278103
CR  - Nourry, C., Seegmuller, T., & Venditti, A. (2013). Aggregate instability under balanced-budget consumption taxes: A re-examination. Journal of Economic Theory, 148(5), 1977-2006. https://doi.org/10.1016/j.jet.2013.07.010
CR  - OECD. (2024). OECD Data. Retrieved from https://data.oecd.org/. Accessed 11.10.2024.
CR  - Pesaran, M. H., Shin, Y., & Smith, R. J. (2001). Bounds Testing Approaches to the Analysis of Level Relationships. Journal of Applied Econometrics, 16(3), 289-326. https://doi.org/10.1002/jae.616
CR  - Phillips, P. C. B., & Perron, P. (1988). Testing for a Unit Root in Time Series Regression. Biometrika, 75(2), 335-346. https://doi.org/10.1093/biomet/75.2.335
CR  - Ridley, D., & Davison, C. (2022). Optimal Tax Rates for Maximal Revenue Generation. Technium Social Sciences Journal, 29, 271-284.
CR  - Sam, C. Y., McNown, R., & Goh, S. K. (2019). An augmented autoregressive distributed lag bounds test for cointegration. Economic Modelling, 80, 130-141. https://doi.org/10.1016/j.econmod.2018.11.001
CR  - Sanz-Sanz, J. F. (2016). The Laffer curve in schedular multi-rate income taxes with non-genuine allowances: An application to Spain. Economic modelling, 55, 42-56. https://doi.org/10.1016/j.econmod.2016.01.024
CR  - Sanz-Sanz, J. F. (2022). A full-fledged analytical model for the Laffer curve in personal income taxation. Economic Analysis and Policy, 73, 795-811. https://doi.org/10.1016/j.eap.2022.01.008
CR  - Singhand, T., & Jain, A. K. (1999). The Corporation Tax in India: Empirical Validity of Laffer Curve. The Indian Economic Journal, 47(2), 109-118. https://doi.org/10.1177/0019466219990212
CR  - Smith, A. (1776). An Inquiry into the Nature and Causes of the Wealth of Nations. London: W. Strahan & T. Cadell.
CR  - Steinmüller, E., Thunecke, G. U., & Wamser, G. (2019). Corporate income taxes around the world: a survey on forward-looking tax measures and two applications. International Tax and Public Finance, 26, 418-456. https://doi.org/10.1007/s10797-018-9511-6
CR  - Stinespring, J. R. (2009). Are state corporate income tax rates too high? A panel study of statewide Laffer curves. SSRN Electronic Journal, 1-23.
CR  - Strulik, H., & Trimborn, T. (2012). Laffer strikes again: Dynamic scoring of capital taxes. European Economic Review, 56(6), 1180-1199. https://doi.org/10.1016/j.euroecorev.2012.05.002
CR  - Stuart, C. E. (1981). Swedish tax rates, labor supply, and tax revenues. Journal of Political Economy, 89(5), 1020-1038. https://doi.org/10.1086/261018
CR  - Şen, H., & Bulut-Çevik, Z. B. (2021). The revenue-maximizing corporate income tax rate for Turkey. Romanian Journal of Economic Forecasting, 24(1), 122.
CR  - Şen, H., Bulut-Çevik, Z. B., & Kaya, A. (2017). The Khaldûn-Laffer curve revisited: A personal income tax-based analysis for Turkey. Munich Personal RePEc Archive, Paper No. 78850.
CR  - Trabandt, M., & Uhlig, H. (2011). The Laffer curve revisited. Journal of Monetary Economics, 58(4), 305-327. https://doi.org/10.1016/j.jmoneco.2011.07.003
CR  - Wanniski, J. (1978). Taxes, revenues, and the Laffer curve. The Public Interest, 50, 3.
CR  - Vasilev, A. (2018). Is consumption-Laffer curve hump-shaped? The VAT evasion channel. Journal of Economic Studies, 45(3), 598-609. https://doi.org/10.1108/JES-05-2017-0115
CR  - Vogel, L. (2012). Tax Avoidance and Fiscal Limits: Laffer Curves in an Economy with Informal Sector. Directorate General Economic and Financial Affairs (DG ECFIN), European Commission.
UR  - https://doi.org/10.17130/ijmeb.1654750
L1  - https://dergipark.org.tr/en/download/article-file/4676780
ER  -