Inflation and Cold Progression: An Analysis of Turkish Income Tax between 2006-2021

Inflation causes high taxation -although real income does not increase- because the tax base targets nominal income. This situation results in as if ability to pay has increased, although it not. Compensation for this deflecting effect of inflation tariff requires growing segments included at rate regularly experienced yearly. However, current need public revenue can cause governments make regulations favour administration and against taxpayers -almost by creating an undervaluation- while providing requirement. It is called "cold progression" literature. In study, which draws attention distortions caused system, evidence obtained shows existence cold progression.