Abstract
The tax structure shows the country’s choice between the principles of justice and efficiency in tax policy. In a modern economy, the tax structure is expected to change in favour of direct taxes according to the principle of justice. This article investigates the causality between tax structure and per capita GDP in Turkey using asymmetric and time-varying causality analysis. The findings reveal that the per capita GDP doesn’t change the tax structure in Turkey and doesn’t show any change in favour of direct taxes to ensure justice in income distribution. This situation can be evaluated as the relationship between per capita GDP, and tax structure may have been drifted apart.
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