The Expectations and Effects of Tax Cuts: Scenario Examples
Various incentives are organized in different types of taxes to support the financial structures of enterprises. These incentives impact decisions for taxpayers planning taxes. The regulations that are included in legislation as tax deductions are seen as the perception and expectation of a decrease...
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| Format: | Article |
| Language: | English |
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Istanbul University Press
2023-05-01
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| Series: | Maliye Çalışmaları Dergisi |
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| Online Access: | https://cdn.istanbul.edu.tr/file/JTA6CLJ8T5/04B78224F9BC4B78AF152B8537EA630A |
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| _version_ | 1850148740260691968 |
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| author | Funda Karakoyun |
| author_facet | Funda Karakoyun |
| author_sort | Funda Karakoyun |
| collection | DOAJ |
| description | Various incentives are organized in different types of taxes to support the financial structures of enterprises. These incentives impact decisions for taxpayers planning taxes. The regulations that are included in legislation as tax deductions are seen as the perception and expectation of a decrease in taxpayers’ tax burden. The literature has discussed the positive impact of tax incentives on production, employment, and investment decisions and emphasized the importance of supporting taxpayers, especially in times of crisis. In terms of regulations with the purpose of providing incentives in legislation containing issues that are open to interpretationand discussion regarding the implementation results, this study takes tax deductions as the subject of examination. This study presents scenarios on how tax deductions reflect onto taxpayers in practice using two examples and calculates the change in tax liability caused by a reduction in the withholding tax rates for rental income and profit distribution. Accordingly, the study evaluates the difference between taxpayers’ expectations and the actual tax payment. Tax liability for property owners is seen to increase because of reducing the rent withholding tax rate. The tax burden is seen to not get reduced as a result of the dividend withholding tax deduction; however, an effect is seen to occur mainly related to tax deferral. Although the implementation results vary according to the taxable income brackets, to interpret the uniform tax burden as increasing or decreasing when rates change would be an incomplete assessment. |
| format | Article |
| id | doaj-art-8edbb81fe5d647a38bbe23919ca33eeb |
| institution | OA Journals |
| issn | 2757-6728 |
| language | English |
| publishDate | 2023-05-01 |
| publisher | Istanbul University Press |
| record_format | Article |
| series | Maliye Çalışmaları Dergisi |
| spelling | doaj-art-8edbb81fe5d647a38bbe23919ca33eeb2025-08-20T02:27:10ZengIstanbul University PressMaliye Çalışmaları Dergisi2757-67282023-05-016912914510.26650/mcd2023-1267697123456The Expectations and Effects of Tax Cuts: Scenario ExamplesFunda Karakoyun0https://orcid.org/0000-0001-8388-1533Dokuz Eylül Üniversitesi, Izmir, TurkiyeVarious incentives are organized in different types of taxes to support the financial structures of enterprises. These incentives impact decisions for taxpayers planning taxes. The regulations that are included in legislation as tax deductions are seen as the perception and expectation of a decrease in taxpayers’ tax burden. The literature has discussed the positive impact of tax incentives on production, employment, and investment decisions and emphasized the importance of supporting taxpayers, especially in times of crisis. In terms of regulations with the purpose of providing incentives in legislation containing issues that are open to interpretationand discussion regarding the implementation results, this study takes tax deductions as the subject of examination. This study presents scenarios on how tax deductions reflect onto taxpayers in practice using two examples and calculates the change in tax liability caused by a reduction in the withholding tax rates for rental income and profit distribution. Accordingly, the study evaluates the difference between taxpayers’ expectations and the actual tax payment. Tax liability for property owners is seen to increase because of reducing the rent withholding tax rate. The tax burden is seen to not get reduced as a result of the dividend withholding tax deduction; however, an effect is seen to occur mainly related to tax deferral. Although the implementation results vary according to the taxable income brackets, to interpret the uniform tax burden as increasing or decreasing when rates change would be an incomplete assessment.https://cdn.istanbul.edu.tr/file/JTA6CLJ8T5/04B78224F9BC4B78AF152B8537EA630Atax deductionrent withholdingprofit distribution withholdingtaxpayer lawtax scenarios |
| spellingShingle | Funda Karakoyun The Expectations and Effects of Tax Cuts: Scenario Examples Maliye Çalışmaları Dergisi tax deduction rent withholding profit distribution withholding taxpayer law tax scenarios |
| title | The Expectations and Effects of Tax Cuts: Scenario Examples |
| title_full | The Expectations and Effects of Tax Cuts: Scenario Examples |
| title_fullStr | The Expectations and Effects of Tax Cuts: Scenario Examples |
| title_full_unstemmed | The Expectations and Effects of Tax Cuts: Scenario Examples |
| title_short | The Expectations and Effects of Tax Cuts: Scenario Examples |
| title_sort | expectations and effects of tax cuts scenario examples |
| topic | tax deduction rent withholding profit distribution withholding taxpayer law tax scenarios |
| url | https://cdn.istanbul.edu.tr/file/JTA6CLJ8T5/04B78224F9BC4B78AF152B8537EA630A |
| work_keys_str_mv | AT fundakarakoyun theexpectationsandeffectsoftaxcutsscenarioexamples AT fundakarakoyun expectationsandeffectsoftaxcutsscenarioexamples |