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Abstract
This article is concerned with the analysis of the problems of improvement of the instruments of formation and implementation of state tax policy, as under the conditions of appearing crisis tendencies. There is a need for periodic changes in tax legislation. Economic feasibility of the conducted transformations is often put in doubt, by both scientists and practitioners. In this regard common approaches should be developed, excluding the possibility of making wrong management decisions concerning introduction, cancellation or change of existing procedure of particular types of tax exemptions. It is proposed to enter the concepts of necessary and sufficient conditions for the economic feasibility for the made decision to modernize the taxation system into scientific vocabulary. According to the first one of them the introduced changes must meet the basic principles of taxation, and according to the second one they should satisfy the regulating principles. The concept of modernization can be considered economically feasible only when both necessary and sufficient conditions are fulfilled. The basic principles of taxation are well known and determined by the provisions of the fundamental economic theory. The body of governing principles should include the achievement of compliance with the objectives of economic development of the country, income leveling and social protection of the population, the coordination of mechanisms of charging, stimulation of reproductive processes, provision of international tax harmonization and the formation of feedback in the system of tax management. The article has assessed the feasibility of realization of the two concepts of value added tax -as the consumption tax and transactions tax. Its results indicate the compliance with necessary and sufficient conditions of economic feasibility of the first concept. Therefore, the modernization of the taxation of added value within the concept of the consumption tax is more preferable and efficient.
Highlights
One of the most important elements of improvement of the state economic policy is solving problems of taxation optimization
There is a need for periodic changes in tax legislation
The modern trends towards strengthening of economic uncertainty cause the state's desire to increase the revenue base of the budget and to form certain financial stabilizers of the social sphere functioning. This often leads to deformation of the generally accepted economic and legal norms, the violation of basic principles of the formation of effective national tax policy
Summary
One of the most important elements of improvement of the state economic policy is solving problems of taxation optimization. The transformations must be timely and economically feasible. In modern economic science the tax policy quality assessment instruments on the based on the forecasting of its realization results have been developed. They are characterized by a complex of indisputable advantages, and have a range of disadvantages. The main one of them are limited possibilities to perform comparative analysis of the overall economic feasibility of proposed initiatives and the focus on the private advantages of a particular project of transformations The main one of them are limited possibilities to perform comparative analysis of the overall economic feasibility of proposed initiatives and the focus on the private advantages of a particular project of transformations (Zee, 1995, pp. 86-89; Armstrong, 2015, pp. 1-17.; Bargain, 2015, pp. 1061-1085)
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