A lengthy front-page piece in the Wall Street Journal today (“Muslim Land Joins Ranks of Tigers”) chronicles Turkey’s explosive economic growth since 2001. The nation’s per-capita GDP appears to have more than doubled in the past five years.
The article mentions the free-market orientation of the ruling party, and it rightly points to much better inflation performance in recent years as a factor in reviving business confidence.
But the article completely missed Turkey’s dramatic corporate tax cuts of recent years. According to KPMG, Turkey’s corporate tax rate was reduced in steps from 44 percent in 1998 to just 20 percent today. The Journal notes that “foreign investment has jumped” in recent years, but it apparently didn’t occur to the reporters that taxation might be a factor.
Read about exciting tax cuts in many other nations, including nearby Muslim nation Egypt, in our upcoming Global Tax Revolution.