Problems of tax policy implementation to support small business at the municipal level[Проблемы Реализации Налоговой Политики По Поддержке Малого Предпринимательства На Муниципальном Уровне]

Research problem. The public policy to support small and medium businesses is being consistently implemented in the Russian Federation. The development of this sector of economy is a national priority. In terms of this national policy implementation local authorities are part of the unified system of government incentive to support small business and the system of public bodies responsible for creating conditions for SME development. The undertaken analysis of the practice of implementing measures to support small businesses at the municipal level demonstrates the lack of continuity in approaches between state and municipal policies in this direction, the systemic misunderstanding on the part of local governments of the role of small business in the socio-economic development of municipalities, as well as the absence of comprehensive assessment of the economic effects of small business support measures provision. Research purpose: to analyze the role of local governments in the national policy implementation to support small business. Taking into consideration the priority importance of tax support measures for small business, the author summarizes implementation practice of certain municipalities, covers the main reasons of most municipalities’ refusal from a flexible tax policy in relation to small business and the possible socio-economic consequences of such practice. Theoretical basis of the research is made up of modern scientific approaches to determining the parameters and tasks of the public administration system operation, the role of self-government institutions in national development and approaches to public regulation of economy. Research methodology and methods include approaches developed in the framework of systemic, institutional and comparative analysis. The research employed findings of opinion polls held by major business associations, business rights commissioners, acting regulatory legal acts, as well as relevant information about the local government revenue. As the analysis result, proposals are given on possible approaches to changing both the municipal and the national tax policies in relation to local authorities to increase the efficiency of tax measures to support small businesses.