Modifications In Developed Countries' Tax Burdens And The Central Government Debts-Purchasing Power Parity Impacts

Abstract

This study aims to analyse the relationship between the values of central government debts in developed countries and the impact scale of purchasing power variations, with a particular focus on the tax burden. This process involves a forward-looking structure that will ensure the reorganisation of tax implementation changes, particularly concerning tax burdens in developed countries, and re-evaluating the social, economic and financial balances targeted in the regulations. These evaluations based on the analyses also indicate an advanced structure regarding projection tax burden applications expressing the current impact values in tax burdens. Our study reveals what this structure means in understanding the differences between countries regarding direct fiscal balances in macroeconomic policies targeting economic growth trends, especially the budgetary impact scales on the tax burden, their relations with central government borrowings and their calculations. Including purchasing power parity impact values in a macroeconomic analysis of developed countries over the same period reveals that the scale effects to be determined provide an essential insight into the fiscal position and balance framework. In this context, it has been demonstrated that analyses conducted within the scope of G-7 countries, which are among the developed countries, should be a priority. Furthermore, it has been deemed appropriate to perform these analyses with panel data analyses on a country basis. The findings obtained through healthy time series analyses were placed in an analytical framework. These findings were supported by findings that considered current values and seasonal variations in recent years, and the study examined the central government debts of developed countries and the effects of purchasing power parity in the same period regarding their effects on the tax burden. The determinations present that the phenomenon directly impacted the increased tax burdens caused by central government debts and purchasing power parity.