The Relationship Between Social Welfare and Taxation in The Context of Welfare Economics: Evaluation of Turkish Revenue Tax

Welfare Economics in normative economics emphasizes the preference of alternative situations by the society. The social welfare constitutes the main point of welfare economics. In this context, the main purpose of welfare economics, which puts forth what should be, is to provide social welfare at the highest level. It is considered that social welfare will rise to the highest level by providing a society-acceptable balance between efficiency and justice in resource allocation. Although there are many determining factors of social welfare, one of the most important is taxation. Because taxation affects the individual’s socio-economic quality of life through effect of income, substitution, and decision-making, while directly determining the budgetary means of the individual. The purpose of the study in this direction is determined the effect of income tax applied in Turkey on level of social welfare starting from relation between social welfare and taxation. Within the scope of this purpose, evaluations in terms of the effects of Turkish income tax applications on efficiency and justice in resource allocation have been made.