Tax Reforming Using A Socially Oriented Mechanism

Abstract

The article studies the social role of the personal income taxation. The income tax pays a significant social role. It is necessary to use a progressive tax scale. The proportional income taxation intensifies stratification of the population. Theoretical and practical aspects of the efficiency of income taxation have been studied by foreign and Russian researchers.This issue is of particular relevance due to the need to improve efficiency of the budget policy of the Russian Federation and increase the amount of budget revenues. The social role of the income tax is insignificant. It is necessary to use a progressive income tax scale since the flat 13 percent scale is unfair to low-wage workers. The transition to the proportional income can intensify the stratification of the population by income level Implementation of the flat income tax scale caused violation of the principles of social justice and economic equality. At present, a new approach to the progressive income tax scale is required. The following methods were used: analytical and comparative methods, comparison method, scientific classification, etc. The study identified the regions with the lowest value of the calculated indicator. It should be based on social functions of the income tax rather than on the fiscal mechanism.At the same time, foreign countries use a progressive income tax scale, while the income tax is socially oriented. Foreign income taxation experience shows that individuals with low salaries are exempted from the income tax, while individuals having high incomes are taxed at high rates.