English translation of an article by Prof. Dr. Mehmet Karaçuka, originally published in Seferihisar Yeni Haber on 12 November 2025 under the Turkish title “Vergi meselesi üzerine.”
Benjamin Franklin famously observed that two things in life are unavoidable: death and taxes. Indeed, a world without taxation seems almost unimaginable. Yet Western civilization and democracy have largely developed through conflicts and compromises over taxation.
The development of democracy was shaped by resistance to the arbitrary taxation imposed by absolute monarchs. The struggle for American independence was also, in essence, a revolt against taxes arbitrarily imposed by Britain.
Asking why taxes exist ultimately brings us to a more fundamental question: why do we need the state?
The state’s underlying purpose is to increase collective welfare by providing, through society’s joint efforts and, when necessary, the legitimate use of coercive authority, what individuals cannot accomplish on their own. If left entirely to the market, services such as education, justice, healthcare, national defense and infrastructure would either not be provided at all or would be provided inadequately. In return for these services, society enters into a social contract that grants the state both the authority to collect taxes and the power to enforce its rules.
However, arbitrary taxation or the misuse of tax revenues creates discontent. One of the main distinctions between Western democracies and totalitarian regimes is the obligation of the state to account to its citizens for how tax money is spent.
In Turkey, awareness of taxation and the level of public accountability are relatively low. Socio-cultural factors undoubtedly play an important role, but the structure of the tax system also matters. Approximately two-thirds of taxes collected are indirect taxes embedded in the prices of goods and services. Every time we buy something, we also pay tax to the state, often without even noticing it. In direct taxation, meanwhile, withholding at source is widespread. Taxes are deducted from salaries and wages before payment, and many people do not even know the full amount they earned before tax.
Taxation is therefore a foundation not only of economic development but also of democracy. When our spouse or children are careless with household money, we immediately demand an explanation. Yet we rarely scrutinize the use of our own money when it is collected as taxes.
Transparency and accountability help prevent waste and strengthen democratic institutions. Where public awareness of taxation remains weak, a small share of society may continue accumulating wealth while large sections of the population struggle with poverty.
Original publication: Seferihisar Yeni Haber — Vergi meselesi üzerine (12 November 2025).
