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The effect of the tax system on investment opportunities and the efficiency of enterprises

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Author Info
V. V. Titov
Abstract

On the basis of modeling, the institutional studies of the existing and proposed tax systems have been conducted to compare the effect of each on the efficiency of enterprises. A new methodological approach to the formation of the tax system is examined. It is proposed that tax deductions are shifted from payments for the use of material resources in production to payments of the property tax and income tax. The profit tax and tax for added value (TAV) will be cancelled. This will provide a more efficient use of physical and labor resources, inventories, fixed capital, investment resources. The tax system can be built in such a way as to reach balance between the interests of the enterprises and of the state.

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Article provided by Institute of Economics and Industrial Engineering of Siberian Branch of RAS in its journal Journal "Region: Economics and Sociology".

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Handle: RePEc:nos:regioe:2006-2_13

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