Formation of a functional and effective model of tax federalism: Criteria and factors

Abstract

Subject. This article explores the criteria and factors of forming a functional effective model of tax federalism, the combination of financial relationships arising in the process of allocation of taxes between public power levels. The Russian model of tax federalism is the subject of research. Objectives. The article aims to develop theoretical provisions and practical recommendations to improve the system of delimitation of authorities for government agencies and municipalities, build a functional and effective model of tax federalism to stimulate the growth of tax potential of the subjects of the Russian Federation and municipal entities. Methods. For the study, I used the methods of comparative analysis, synthesis, and comparison. Results. The article proposes criteria and factors that determine the formation of a functional effective model of tax federalism aimed at increasing the tax potential of the Russian Federation constituent entities and municipalities. Conclusions and Relevance. The article concludes that the most important characteristic of the tax federalism model is functional efficiency. When determining the quality of the existing model, it is necessary to rely on the degree of implementation of the functional purpose of tax federalism. The significance of the study lies in the development of theoretical provisions and practical recommendations aimed at forming a functional and effective model of tax federalism.