Progressive Taxation: Global Practice And Prospects For Introduction In Russia
Abstract
In any country taxation cannot remain indefinitely unchanged if only for the fact that it is not only a fiscal mechanism, but also a tool of state policy. Introduction of new methods aimed at improving the efficiency of the Russian system of taxation is unavoidable. There are ongoing hot arguments about progressive and flat rate of taxation. The sides of the argument continue pinning label to each other, while not many understand the matter. Is it true that progressive tax rate means a higher tax burden for citizens? The question of whether this rate fits Russian situation and what results may it bring to the country where the problem of working poor is quite acute. Progressive taxation is a system where the tax rate changes depending on the income bracket. In other words, the higher the taxable income, the higher the rate used to calculate the tax. It should be noted, that progressive taxation is primarily not high taxes for high incomes, but low (or zero) taxes for low incomes. From January 1, 2021, Russia switched to progressive taxation from flat rate, however, not all incomes are subjected to this scale. Increased rate will be applied only to the part of annual income exceeding 5 million rubles. Thus, problems and prospects of introducing progressive taxation into the Russian tax system and analysis of international practices are especially relevant nowadays.
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About this article
Publication Date
29 November 2021
Article Doi
eBook ISBN
978-1-80296-116-4
Publisher
European Publisher
Volume
117
Print ISBN (optional)
-
Edition Number
1st Edition
Pages
1-2730
Subjects
Cultural development, technological development, socio-political transformations, globalization
Cite this article as:
Khasanova, S. S., Pedaeva, I. M., & Delmikhanova, K. A. (2021). Progressive Taxation: Global Practice And Prospects For Introduction In Russia. In D. K. Bataev, S. A. Gapurov, A. D. Osmaev, V. K. Akaev, L. M. Idigova, M. R. Ovhadov, A. R. Salgiriev, & M. M. Betilmerzaeva (Eds.), Social and Cultural Transformations in The Context of Modern Globalism, vol 117. European Proceedings of Social and Behavioural Sciences (pp. 2196-2200). European Publisher. https://doi.org/10.15405/epsbs.2021.11.290