In the study, the effects of financial burdens (taxes and social security contribution) on income distribution inequality were investigated by using panel data analysis method, using data from 2004 to 2017 belonging to 17 OECD countries, whose data can be accessed regularly. In the study, the Gini coefficient representing the income distribution inequality as the dependent variable, and the taxes on goods and services, personal income tax, taxes on corporate income, taxes on property and social security contributions are used as independent variables. Since the model established for selected OECD countries does not have a horizontal cross-section dependency, the existence of the unit root in the variables was investigated with Levin, Lin & Chu (2002) and Hadri (2000) tests. Afterwards, it was decided to apply the fixed effect model as a result of the F, LR and Hausmann tests. Since variance and autocorrelation were detected in the model, the analysis was estimated by Arellano (1987), Froot (1989) and Rogers (1993) test. As a result of the study, the effect of taxes on goods and services on income distribution inequality was found to be positive and statistically significant, whereas the effect of income and corporate tax and social security contributions on income distribution inequality was found to be negative and statistically significant. Accordingly, it has been determined that indirect financial burdens increase income distribution inequality and direct financial burdens decrease income distribution inequality.
Tax Types, Social Security Contribution, Income Distribution Inequality, OECD Countries, Emprical Analysis.