The article is devoted to analyzing the initial stage of the formation of the modern taxation system, which dates back to the first half of the XX century. The relevance of this topic is caused by the fact that the current tax system has proved inadequate for today's extremely dynamic conditions, which both representatives of academic science and analytical reports of international financial organizations confirm. When studying the reasons for this phenomenon, most researchers note the impact of the globalization process, which has significantly changed the world economy. In the era of globalization, multinational corporations and independent entrepreneurs use a wide range of methods to minimize the tax burden, thereby creating fiscal problems for governments and the population. However, in the shadow of the globalization process, there are still some poorly understood, albeit significant, factors that have reduced the efficiency of the global tax system, which have influenced its formation in the past and continue to do so today. A comprehensive analysis of such factors could significantly contribute to understanding the reasons for the overall decline in the efficiency of the global tax system. To achieve this goal, the article analyses the relationship between philosophical, social, and business views of the first half of the 20th century and the factors shaping the tax system. The economic efficiency of the 1956 tax reform in France, which primarily provided for replacing the turnover tax with the value-added tax, is illustrated using the experience of France. By calculating the dynamics of the inflation index in France in 1955–1975, the author verifies and questions the widespread belief that VAT (as opposed to turnover tax) contributes to lowering the prices of goods for final consumers. The authors analyze the relationship between the loss of tax preferences by French companies (due to the implementation of VAT by other European countries) and the growth rate of France's GDP. The authors identify the fundamental factor that influenced the content and nature of the 1956 tax reform. The study used general scientific and special methods: analysis and synthesis, induction and deduction, abstraction and concretization, system analysis, comparison, grouping, calculation of relative values, and graphical method.
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