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Tax Incentives in Russia and Other Countries: Critical Analysis

Author

Listed:
  • Yury M. Gorlin

    (Russian Presidential Academy of National Economy and Public Administration (RANEPA), Moscow 119571, Russia)

  • Victor Y. Lyashok

    (Russian Presidential Academy of National Economy and Public Administration (RANEPA), Moscow 119571, Russia; National Research University Higher School of Economics (NRU HSE), Moscow 101000, Russia)

Abstract

Nowadays tax incentives are widely used in many countries including Russia. Nevertheless, this tax instrument has a number of significant disadvantages. Firstly, they decrease budget revenues, and at the same time the efficiency of tax incentives usually is not estimated and seems to be not positive. Secondly, a lot of tax incentives can be replaced by more comfortable types of direct expenditures. Finally, as a rule, from an equity standpoint tax exemption is not a good, as recipients of tax exemption are usually wealthy people. This paper discusses main theoretical aspects of tax incentives (with focus on personal income taxation), provides a review of the world taxation practices and analyzes the tax exemptions in Russia. The results of analyses allow to outline the recommendations intended to improve the personal income taxation.

Suggested Citation

  • Yury M. Gorlin & Victor Y. Lyashok, 2018. "Tax Incentives in Russia and Other Countries: Critical Analysis," Finansovyj žhurnal — Financial Journal, Financial Research Institute, Moscow 125375, Russia, issue 6, pages 34-46, December.
    • Handle: RePEc:fru:finjrn:180603:p:34-46
    DOI: 10.31107/2075-1990-2018-6-34-46
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    References listed on IDEAS

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    More about this item

    Keywords

    tax allowance; tax credit; tax rate relief; tax-free threshold; tax credit on earned income; child tax credit; tax system.;
    All these keywords.

    JEL classification:

    • E62 - Macroeconomics and Monetary Economics - - Macroeconomic Policy, Macroeconomic Aspects of Public Finance, and General Outlook - - - Fiscal Policy; Modern Monetary Theory
    • H20 - Public Economics - - Taxation, Subsidies, and Revenue - - - General
    • H24 - Public Economics - - Taxation, Subsidies, and Revenue - - - Personal Income and Other Nonbusiness Taxes and Subsidies

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