FISCAL ILLUSION: AN EVALUATION FOR TURKEY’S ECONOMY

F？scal Illusion hypothesis deals with the relation between tax payers’ perceptions devoted to the size of the public sector and tax revenues to finance public expenditures. Due to the factors as complexity of tax system, tax rates, governments preference between debt finance or increasing money supply instead of taxation, automatic increase of taxes, the share of indirect taxes in tax revenues lack of confidence to government policy, etc. tax payers can underestimate the level of real tax burden and the size of the public sector. In this study, the theoretical development and different approaches about fiscal illusion will be evaluated. On the basis of these information, fiscal illusion level of Turkish Economy will be assessed by different dat