Factual Changes in Inflation and National Income: Their Impact on the Tax Burden Within OECD


Ahmet Niyazi Ozker

The main purpose of this research is to determine the salience of the mutual effects of inflation and national income on the tax burden. The rationale behind the incorporation of OECD countries within our model is to establish a comprehensive framework encompassing nations of varying developmental benchmarks, thereby comprehending the collective efficacy of the mean global tax encumbrance. Within this framework, the selection of variables within our model entails the inclusion of two distinct independent variables: inflation, a universally recognized financial phenomenon, and the average GDP variability, encompassing the entirety of OECD countries. The methodological approach followed in line with this objective is supported by the basic premise that functioning mechanisms that characterize macroeconomic assets such as inflation and national income, which play a fundamental role in tax burden analysis within OECD member countries, will emerge. Within the framework of this purpose, the variables subject to the model thus form a meaningful spectrum consisting of different effect sizes. Within this conceptual framework, the possible permutations of inflation rates and the inherent variability of national income provide important explanations that illuminate the outlines of average tax burden thresholds across OECD countries. Moreover, these explanations are important as touchstones in the structure that governs the articulation of global macroeconomic policies. While the noticed findings reveal the necessity of investigating the aspects of the subject determined by the variables mentioned above, they combine in the relevant model to create a convincing basis. Therefore, the comprehensive data analysis conducted in this study seeks to understand the above-mentioned interrelationships within the causal links paradigm that encompasses the model's constitutive variables.


Keywords:Inflation rates, Fiscal policies, Gross Domestic Product (GDP), OECD, Tax burden

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