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On Tax Reform

Author

Listed:
  • Aganbegyan, Abel

    () (Russian Presidential Academy of National Economy and Public Administration)

Abstract

Insolvency of the taxation system in new conditions of market economy when it could not perform the main functions — to provide growth of budget receipts (they will be decreased up to 2019), to stimulate growth of economy, to redistribute the income from the rich to the poor is considered in the article. The general indicator of the tax burden of Russia equal to 33–35% of GDP is analyzed in comparison with other countries. Though this tax burden is approximately equal to average values in developed countries, it is offered to reduce it as Russia are less developed country and more means are necessary for enterprises and the population to have sources of more quick development. It is offered to reduce it to the level of developing countries, i. e. less than 30% of GDP. At the same time, it is offered to reduce tax burden on business considerably in order to compensate partially the growth of wages which is necessary to ensure the increase the income of the population (i. e. indexation connected with the rise of the taxes). It is necessary to aim our taxation system to stimulate business activity, the growth of economy and investments. Also measures for strengthening a distribution role of taxation in reduction an unreasonable difference in welfare of the rich and the poor in Russia are considered. For the poor the taxes should be decreased, and to the rich — increased in the form of the direct taxes on the income, the real estate, inheritance and in the form of indirect taxes — excises on luxury goods.

Suggested Citation

  • Aganbegyan, Abel, 2017. "On Tax Reform," Economic Policy, Russian Presidential Academy of National Economy and Public Administration, vol. 1, pages 114-133, February.
  • Handle: RePEc:rnp:ecopol:ep1705
    as

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    References listed on IDEAS

    as
    1. D. Medvedev., 2015. "A New Reality: Russia and Global Challenges," VOPROSY ECONOMIKI, N.P. Redaktsiya zhurnala "Voprosy Economiki", vol. 10.
    2. D. Medvedev., 2016. "Social and economic development of Russia: Finding new dynamics," VOPROSY ECONOMIKI, N.P. Redaktsiya zhurnala "Voprosy Economiki", vol. 10.
    3. V. Mau., 2016. "Anti-crisis measures or structural reforms: Russia’s economic policy in 2015," VOPROSY ECONOMIKI, N.P. Redaktsiya zhurnala "Voprosy Economiki", vol. 2.
    Full references (including those not matched with items on IDEAS)

    More about this item

    Keywords

    functions of the taxation system; the tax burden; reforming obligatory social payments; the international trends of changing the taxation system;

    JEL classification:

    • D31 - Microeconomics - - Distribution - - - Personal Income and Wealth Distribution
    • E60 - Macroeconomics and Monetary Economics - - Macroeconomic Policy, Macroeconomic Aspects of Public Finance, and General Outlook - - - General
    • E62 - Macroeconomics and Monetary Economics - - Macroeconomic Policy, Macroeconomic Aspects of Public Finance, and General Outlook - - - Fiscal Policy
    • E64 - Macroeconomics and Monetary Economics - - Macroeconomic Policy, Macroeconomic Aspects of Public Finance, and General Outlook - - - Incomes Policy; Price Policy

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