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Fiscal Drag as an Automatic Stability Tool, in the Case of New Regulation with Price Criteria in Automotive Sectors Special Consumption Tax (SCT)

Year 2017, , 159 - 175, 31.12.2017
https://doi.org/10.30927/ijpf.335594

Abstract

Fiscal
drag is a result of real or nominal expanding economy and progressive taxation.
In general, individuals are forced to enter the upper tax bracket depending on
their increased income or expenditure. More tax burden can result in less
consumption. Fiscal drag, lack of spending or excessive taxation can cause the
economy to slow down. Traditional view suggests that fiscal drag may serve as a
natural automatic stabilizer to cool the economy. However, this view ignores
the supply side and in particular the potential effects of the high tax burden
on economy. This study examines the extent to which the expected automatic
stabilization function can be performed and the possible side effects on
economic balances and income distribution of fiscal drag in our country in the
case of new regulation with price criteria in automotive sectors Special
Consumption Tax (SCT).

References

  • Creedy, J. and Gemmell, N. (2007). “Tax Revenues and Fiscal Drag: An Introduction”, Australian Economic Review, 40: pp. 323–338.
  • Demir, M. A. (2013). Türkiye’de Motorlu Taşıtlar Vergilendirmesinin Analizi ve Değerlendirilmesi, Unpublished Master's Thesis, Gazi University S.B.E. Public Finance D. Supervisor: Doç. Dr. Fatih Saraçoğlu, Ankara.
  • Fatas, A. and Mihov, I. (2001). “Government Size and Automatic Stabilizers: International and Intranational Evidence”, Journal of International Economics, 55: pp. 3‐28.
  • GİB. (2002). General Rationale of Special Consumption Tax, Law No: 4760 Date: 06.06.2002. http://www.gib.gov.tr/fileadmin/mevzuatek/gerekceler/KDV/tuk_4760_sayili_kanun.pdf. (10.03.2017)
  • Gülçiçek, A. (2012). Otomotiv Sektörünün ÖTV Düzenlemelerindeki Yeri ve Özelikli Hususlar. Vergi Sorunları Dergisi, 289, October
  • Gülçiçek, A. (2013) . Türkiye Otomotiv Sektörü Vergi Gelirlerine Etkisi ve Vergisel Sorunlar. Vergi Sorunları Dergisi. 300, September: pp. 21-26.
  • Hacıköylü, C. (2017). Türkiye'de Motorlu Kara Taşıtlarına İlişkin Mali Yükümlülükler; Kavramlar, Uygulama ve Değerlendirmeler, 1. Baskı, Eskişehir, Nisan Kitabevi.
  • Heinemann, F. (2001). “After the death of inflation: will fiscal drag survive?”, Fiscal Studies, 22(4), pp. 527-546.
  • Immervoll, H. (2006). “Fiscal Drag–An Automatic Stabiliser?”, Volume 25 - Micro-Simulation in Action, Ed. Bargain, O., Emerald Group Publishing Limited, pp. 141-163.
  • Immervoll, H. (2005). “Falling up the stairs: The effects of bracket creep on household incomes” Review of Income and Wealth, 151(1), pp. 37–62.
  • Kalkınma Bakanlığı. (2014). Otomotiv Sanayi Çalışma Grubu Raporu 2014-2018, Kalkınma Bakanlığı Yayın No: KB: 2890
  • KPMG, (2016). Türkiye Otomotiv Yöneticileri Araştırması – 4, https://home.kmpg.com (01.04.2017)
  • Lee, S. (2012). The Effect of Fiscal Drag on Tax Revenue and Tax Burden. Young Back Choi (Ed.) in Institutional Economics and National Competitiveness. New York: Routledge.
  • Oktar, K. (2008). Özel Tüketim Vergisi Yorum ve Açıklamaları, 1. Baskı, Ankara, Savaş Yayınevi.
  • OYDER, (2017). Automobile Authorized Dealers Association Announcement, http://ww.oyder_tr.org (03.04.2017)
  • Pişkin, S. (2017a). Otomotiv Sektör Raporu, Türkiye Otomotiv Sanayi Rekabet Gücü ve Talep Dinamikleri Perspektifinde 2020 İç Pazar Beklentileri, Ocak 2017, TSKB, Ekonomik Araştırmalar, http://osd.org.tr/Sites/1/upload/files/Otomotiv_Sektor_Raporu_TSKB-2208.pdf (02.04.2017)
  • Pişkin, S. (2017b). “Belirsizlik ve Bilinmezlik: Yeni ÖTV Düzenlemesinin Otomotiv Sektörüne Etkileri”, http://osd.org.tr/Sites/1/upload/files/Otomotiv_Sektoru_ Bilgi_ Notu _ Yeni_OTV_Duzenlemesinin Otomotiv_Sektorune_Etkileri_TSKB-2207.pdf (01.05.2017).
  • Saygın, Ö. (2013). Otomobiller Üzerinden Alınan Vergilerin Ampirik Analizi, Vergi Sorunları Dergisi, 296, May: pp. 180-190.
  • Taraktaş, A. (2014). Karbondioksit Emisyonlarının Azaltılması için Motorlu Taşıtların Vergilendirilmesi; Avrupa Birliği’ndeki Son Gelişmeler ve Türkiye için Öneriler, Yaklaşım Dergisi, 264, December: pp. 461-468.
  • Thuronyi, V. (1996). Adjusting Taxes for Inflation. Victor Thuronyi (Ed.) in Tax Law Design and Drafting. Washington: International Monetary Fund.
  • TÜİK. (2017). News Bulletin, No:24596, 10 March 2017, http://www.tuik.gov.tr (19.03.2017).
  • U.S. Council of Economic Advisers. (1969). Economic Report of the President 1969. Available at www.presidency.ucsb.edu/economic_reports/1969.pdf (01.05.2017).

Fiscal Drag as an Automatic Stability Tool, in the Case of New Regulation with Price Criteria in Automotive Sectors Special Consumption Tax (SCT)

Year 2017, , 159 - 175, 31.12.2017
https://doi.org/10.30927/ijpf.335594

Abstract

Fiscal
drag is a result of real or nominal expanding economy and progressive taxation.
In general, individuals are forced to enter the upper tax bracket depending on
their increased income or expenditure. More tax burden can result in less
consumption. Fiscal drag, lack of spending or excessive taxation can cause the
economy to slow down. Traditional view suggests that fiscal drag may serve as a
natural automatic stabilizer to cool the economy. However, this view ignores
the supply side and in particular the potential effects of the high tax burden
on economy. This study examines the extent to which the expected automatic
stabilization function can be performed and the possible side effects on
economic balances and income distribution of fiscal drag in our country in the
case of new regulation with price criteria in automotive sectors Special
Consumption Tax (SCT).

References

  • Creedy, J. and Gemmell, N. (2007). “Tax Revenues and Fiscal Drag: An Introduction”, Australian Economic Review, 40: pp. 323–338.
  • Demir, M. A. (2013). Türkiye’de Motorlu Taşıtlar Vergilendirmesinin Analizi ve Değerlendirilmesi, Unpublished Master's Thesis, Gazi University S.B.E. Public Finance D. Supervisor: Doç. Dr. Fatih Saraçoğlu, Ankara.
  • Fatas, A. and Mihov, I. (2001). “Government Size and Automatic Stabilizers: International and Intranational Evidence”, Journal of International Economics, 55: pp. 3‐28.
  • GİB. (2002). General Rationale of Special Consumption Tax, Law No: 4760 Date: 06.06.2002. http://www.gib.gov.tr/fileadmin/mevzuatek/gerekceler/KDV/tuk_4760_sayili_kanun.pdf. (10.03.2017)
  • Gülçiçek, A. (2012). Otomotiv Sektörünün ÖTV Düzenlemelerindeki Yeri ve Özelikli Hususlar. Vergi Sorunları Dergisi, 289, October
  • Gülçiçek, A. (2013) . Türkiye Otomotiv Sektörü Vergi Gelirlerine Etkisi ve Vergisel Sorunlar. Vergi Sorunları Dergisi. 300, September: pp. 21-26.
  • Hacıköylü, C. (2017). Türkiye'de Motorlu Kara Taşıtlarına İlişkin Mali Yükümlülükler; Kavramlar, Uygulama ve Değerlendirmeler, 1. Baskı, Eskişehir, Nisan Kitabevi.
  • Heinemann, F. (2001). “After the death of inflation: will fiscal drag survive?”, Fiscal Studies, 22(4), pp. 527-546.
  • Immervoll, H. (2006). “Fiscal Drag–An Automatic Stabiliser?”, Volume 25 - Micro-Simulation in Action, Ed. Bargain, O., Emerald Group Publishing Limited, pp. 141-163.
  • Immervoll, H. (2005). “Falling up the stairs: The effects of bracket creep on household incomes” Review of Income and Wealth, 151(1), pp. 37–62.
  • Kalkınma Bakanlığı. (2014). Otomotiv Sanayi Çalışma Grubu Raporu 2014-2018, Kalkınma Bakanlığı Yayın No: KB: 2890
  • KPMG, (2016). Türkiye Otomotiv Yöneticileri Araştırması – 4, https://home.kmpg.com (01.04.2017)
  • Lee, S. (2012). The Effect of Fiscal Drag on Tax Revenue and Tax Burden. Young Back Choi (Ed.) in Institutional Economics and National Competitiveness. New York: Routledge.
  • Oktar, K. (2008). Özel Tüketim Vergisi Yorum ve Açıklamaları, 1. Baskı, Ankara, Savaş Yayınevi.
  • OYDER, (2017). Automobile Authorized Dealers Association Announcement, http://ww.oyder_tr.org (03.04.2017)
  • Pişkin, S. (2017a). Otomotiv Sektör Raporu, Türkiye Otomotiv Sanayi Rekabet Gücü ve Talep Dinamikleri Perspektifinde 2020 İç Pazar Beklentileri, Ocak 2017, TSKB, Ekonomik Araştırmalar, http://osd.org.tr/Sites/1/upload/files/Otomotiv_Sektor_Raporu_TSKB-2208.pdf (02.04.2017)
  • Pişkin, S. (2017b). “Belirsizlik ve Bilinmezlik: Yeni ÖTV Düzenlemesinin Otomotiv Sektörüne Etkileri”, http://osd.org.tr/Sites/1/upload/files/Otomotiv_Sektoru_ Bilgi_ Notu _ Yeni_OTV_Duzenlemesinin Otomotiv_Sektorune_Etkileri_TSKB-2207.pdf (01.05.2017).
  • Saygın, Ö. (2013). Otomobiller Üzerinden Alınan Vergilerin Ampirik Analizi, Vergi Sorunları Dergisi, 296, May: pp. 180-190.
  • Taraktaş, A. (2014). Karbondioksit Emisyonlarının Azaltılması için Motorlu Taşıtların Vergilendirilmesi; Avrupa Birliği’ndeki Son Gelişmeler ve Türkiye için Öneriler, Yaklaşım Dergisi, 264, December: pp. 461-468.
  • Thuronyi, V. (1996). Adjusting Taxes for Inflation. Victor Thuronyi (Ed.) in Tax Law Design and Drafting. Washington: International Monetary Fund.
  • TÜİK. (2017). News Bulletin, No:24596, 10 March 2017, http://www.tuik.gov.tr (19.03.2017).
  • U.S. Council of Economic Advisers. (1969). Economic Report of the President 1969. Available at www.presidency.ucsb.edu/economic_reports/1969.pdf (01.05.2017).
There are 22 citations in total.

Details

Primary Language English
Subjects Economics
Journal Section Articles
Authors

Abdurrahman Taraktaş

Canatay Hacıköylü

Publication Date December 31, 2017
Submission Date September 11, 2017
Acceptance Date December 6, 2017
Published in Issue Year 2017

Cite

APA Taraktaş, A., & Hacıköylü, C. (2017). Fiscal Drag as an Automatic Stability Tool, in the Case of New Regulation with Price Criteria in Automotive Sectors Special Consumption Tax (SCT). International Journal of Public Finance, 2(2), 159-175. https://doi.org/10.30927/ijpf.335594

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