A Literature Review For Assessing the Macroeconomic Effects of Taxes

With the coexistence of people, societies have emerged and as a result, there is a need for a state organization that organizes interpersonal and social relations. Together with the coexistence of societies, states meet the common needs of societies and they need various resources. States have various incomes while meeting these needs. Taxes, duties, fees, goodwill, privatization proceeds, revenues from state management, parafiscal revenues etc. revenues constitute the state s income sources. Some of the sources (such as taxes, duties, fees, etc.) constitute the permanent source of income of the states while others constitute the temporary sources of income (such as privatization revenues, revenues from state management). Of course, the largest share of these resources is tax revenues. Taxes were collected primarily to finance public expenditures due to their financial purpose. With the change in the role of the state in the economy, taxes are used for non-financial purposes except for the financial purpose. With the beginning of the use of taxes for non-financial purposes, taxation allows the state, the economy and social arrangements to be made. Prior to the development of an interventionist state approach, it was advocated that taxes should be taken only for the financial purpose of financing public expenditures. It has been added to taxes, economic and social aims with the understanding of interventionist state. In addition, countries use taxes when determining environmental policies. As a result of taxes with a new view of the interventionist state; countries use taxes to achieve a variety of financial, economic and social goals. As a result of the use of taxes for various purposes; It can be said that taxes have an impact on various economic variables as well as financial, social and environmental purposes. Taxes can affect investment volume through capital accumulation through savings in an economy. With the impact of the investments, various effects may occur on the economic growth and development of the countries. On the other hand, employment and income distribution factors can be affected by these developments. Therefore, it is important to evaluate the macroeconomic effects of taxes. In this study, the macroeconomic effects of taxes (savings, investments, economic growth, economic development, employment and income distribution) were evaluated from a theoretical point of view, and empirical studies on the macroeconomic effects of taxes were included and a general judgment was reached.