Advantages and disadvantages of direct and indirect taxes. Indirect taxation Types of indirect taxes

Keywords

INDIRECT TAXATION/ VAT / EXCISES / RELATIONSHIP OF DIRECT AND INDIRECT TAXATION / ADVANTAGES OF INDIRECT TAXATION/ INDIRECT TAXATION / VAT / EXCISES / / ADVANTAGE OF INDIRECT TAXATION

annotation scientific article on economics and business, author of scientific work - Turbina Natalia Mikhailovna, Cheremisina Tatyana Nikolaevna, Cheremisina Natalia Valentinovna

The article deals with the problem of finding the optimal ratio of the economic efficiency of taxation and social justice on the example ratio of direct and indirect taxation. The correctness of the development of tax policy on the definition of the fiscal and regulatory value of the ratio of direct and indirect taxes is considered. The analysis of models of the ratio of direct and indirect taxes in foreign countries Oh. The features of functioning of such models as: Eurocontinental, Anglo-Saxon, Latin American and mixed tax systems are considered. It is determined that Russia corresponds to most of the features characteristic of the Latin American model of budgeting. Statistical data are given that indirect taxes have always and everywhere been a highly profitable source of the budget. Analyzed ratio of direct and indirect taxation in Russia for the period from 2007 to 2014. by levels of budgets of the budget system: the consolidated budget of the Russian Federation and the federal budget of the Russian Federation. Data on the receipt of direct and indirect taxes in the consolidated budget of the Russian Federation for the period from 2007 to 2014 are given. The main attention in the article is paid to the study of the role of indirect taxes: VAT and excises. The factors of implementation and solid substantiation in the VAT tax system are studied. Fiscal and regulatory advantages of indirect taxes for the state are considered. The undeniable advantages of levying indirect taxes in the context of inflation are determined, since they are more abstracted from the formation of price elements and are charged on the price as a whole, which gives a stable corrected income to the budget system. Indirect taxation filters the secondary cash flow, precipitating into the budget system a part of the income that has gone from direct taxation.

The text of the scientific work on the topic "Advantages and disadvantages of indirect taxation"

UDK 336.226 doi: 10.20310/1819-8813-2016-11-8-80-85

ADVANTAGES AND DISADVANTAGES OF INDIRECT TAXATION

TURBINA NATALIA MIKHAILOVNA Tambov State University named after G. R. Derzhavin, Tambov, Russian Federation, e-mail: [email protected]

CHEREMISINA TATYANA NIKOLAEVNA Tambov State University named after G. R. Derzhavin, Tambov, Russian Federation, e-mail: [email protected]

CHEREMISINA NATALIA VALENTINOVNA Tambov State University named after G. R. Derzhavin, Tambov, Russian Federation, e-mail: [email protected]

The article deals with the problem of finding the optimal ratio of economic efficiency of taxation and social justice on the example of the ratio of direct and indirect taxation. The correctness of the development of tax policy on the definition of the fiscal and regulatory value of the ratio of direct and indirect taxes is considered. The analysis of models of the ratio of direct and indirect taxes in foreign countries is given. The features of functioning of such models as: Eurocontinental, Anglo-Saxon, Latin American and mixed tax systems are considered. It is determined that Russia corresponds to most of the features characteristic of the Latin American model of budgeting. Statistical data are given that indirect taxes have always and everywhere been a highly profitable source of the budget. The ratio of direct and indirect taxation in Russia for the period from 2007 to 2014 is analyzed. by levels of budgets of the budget system: the consolidated budget of the Russian Federation and the federal budget of the Russian Federation. Data on the receipt of direct and indirect taxes in the consolidated budget of the Russian Federation for the period from 2007 to 2014 are given. The main attention in the article is paid to the study of the role of indirect taxes: VAT and excises. The factors of implementation and solid justification in the VAT tax system are studied. Fiscal and regulatory advantages of indirect taxes for the state are considered. The undeniable advantages of levying indirect taxes in the context of inflation are determined, since they are more abstracted from the formation of price elements and are charged on the price as a whole, which gives a stable corrected income to the budget system. Indirect taxation filters the secondary cash flow, precipitating into the budgetary system a part of the income that has gone out of direct taxation.

Keywords: indirect taxation, VAT, excises, ratio of direct and indirect taxation, advantages of indirect taxation

One of the most important tasks of the state in the field of taxation at the present stage is to find the optimal ratio of economic efficiency and social justice. The concept of social market economic relations requires the creation of balanced solutions in the field of taxation: not a "world of abundance for the few" and not a "socialist deficit for all" .

Studies of relationships and trends in socially oriented world economies are based on specific indicators of economic and social orientation tax systems,

the most important of which is the ratio of direct and indirect taxes.

The ratio of direct and indirect taxation makes it possible to determine the possibility of using existing methods (fiscal or regulatory) of generating budget revenues. The correct determination of the shares of withdrawal of direct and indirect taxes contributes to the development of an effective tax policy of the state.

In the taxation of foreign countries, taking into account the ratio of direct and indirect taxes, the following models are distinguished: Eurocontinental, Anglo-Saxon, Latin American and

mixed tax system. Table 1 shows data on the ratio of direct and indirect taxation in countries that apply different taxation models.

The Anglo-Saxon model is typical for such countries as Australia, Great Britain, USA, Germany, Italy, Canada, etc. In this model

A similar picture is observed in the countries - members of the OECD, although there the percentage is generally lower. IN THE USA income tax With individuals accounts for 44% of all income, in Germany - 38%.

The Eurocontinental model is typical for such countries as Germany, the Netherlands, France, Austria, and Belgium. This model is characterized by a high share of social insurance contributions. So, in Germany, revenues from social insurance contributions account for more than 45% of the total budget revenues and 22% of indirect taxes.

Countries such as Brazil, Mexico, Chile, Bolivia, Peru and others, due to the high level of inflation, use the Latin American taxation model, which is focused on the imposition of traditional indirect taxes.

In order to avoid the dependence of the budget on certain types of taxes, states choose a mixed model of taxation, which combines the features of other models. The mixed taxation model is used in Japan, where the structure of tax revenues is approximately the same as in countries with the Anglo-Saxon model. However, priority is given not to income taxation, but to the collection of insurance premiums. A number of authors attribute Argentina and Italy to this model. In Italy, for example, with significant

the focus is on direct taxes on individuals. The share of indirect taxes is very small. For example, in the structure of UK tax revenues in 2013-2014. the share of taxes such as income tax, social contributions, some of which are paid by citizens, is about 55%.

share of indirect taxes, the share of direct taxes is 36%.

It should be noted that in economic developed countries(Great Britain, Germany, Finland, Canada, Japan and the USA) there is a trend towards direct taxation. At the same time, an orientation towards indirect taxation is also observed in such highly developed countries as Australia, Italy and Sweden.

At the same time, it should be noted that when substantiating the ratio of direct and indirect taxation, there are no optimal tax theories for all countries. Since, in addition to objective factors (income, consumption level), in the ratio of direct and indirect taxation, it is necessary to take into account the national characteristics of the country's population, the size of all types of consumption and needs.

Russia corresponds to most of the features characteristic of the Latin American model of budget formation. This is due to the fact that, firstly, the formation of the tax system took place in the conditions of high level inflation and, secondly, sufficient ease of administration of indirect taxes. The Russian tax system in its modern form has existed for about 20 years, unlike the tax systems of many developed countries, which have been formed for centuries. However

Table 1

Ratio of direct and indirect taxation in world practice, %

Item No. Taxation model Countries where this model is applied Ratio of direct and indirect taxation, %

Direct taxation Indirect taxation

1. Anglo-Saxon USA, Germany, Italy, Australia, Great Britain, Canada, etc. 60-65% (focused on taxes from individuals, social contributions) 35%

2. Euro-continental Germany, Netherlands, France, Austria, Belgium 40% (focused on social insurance) 60%

3. Latin American Chile, Bolivia, Peru, Brazil, Mexico, etc. 55% 45%

4. Mixed Japan, Argentina, Italy, etc. 40% (focused on the collection of insurance premiums) 60%

However, with the development of the tax system of the Russian Federation, the role and share of direct taxes tends to increase.

The fact that indirect taxes have always and everywhere been a highly profitable source of the budget,

confirmed by history and official statistics (Table 2).

Table 2 shows that at the end of the XIX century. and the beginning of the 20th, the budgets of large states were replenished to a greater extent at the expense of indirect taxes.

table 2

The ratio between direct and indirect taxes in the total amount of tax revenues, million rubles

at the turn of the XIX-XX centuries. Total tax revenues Taxes Share of indirect taxes in total tax revenues, %

direct indirect

Russia, 1889 4120.6 270.0 3850.6 93.4

England, 1900-1901 2922.5 531.3 2391.2 81.8

Italy, 1899-1900 1714.8 481.3 1232.5 71.9

Belgium, 1900 452.9 56.1 396.2 87.6

Holland, 1900 303.9 71.4 232.5 76.5

Austria, 1898 1763.8 301.6 1462.2 82.9

Hungary, 1898 1220.5 242.0 977.6 80.1

Spain, 1900 886.0 376.0 510.0 57.6

France, 1890 3492.0 515.7 2976.3 85.2

The ratio of direct and indirect taxation in Russia was analyzed for the period from 2007 to 2014. (Table 3) by levels of budgets of the budgetary system: the consolidated budget of the Russian Federation and the federal budget of the Russian Federation.

In total, there is an upward trend in tax and non-tax revenues, the ratio of direct

and indirect taxes - uniformly, in the same percentage every year.

The trend in income from direct and indirect taxes reflects the decline in direct taxes in 2009: revenues decreased by 1,841.5 million rubles compared to 2008. Further, direct tax revenues only increased, in 2012 revenues amounted to 8,179, 5 million rubles

Table 3

Receipts of direct and indirect taxes to the consolidated budget of the Russian Federation for the period from 2007 to 2014, million rubles

Year Total tax and not tax revenue, million rubles Total tax revenues Including: Non-tax revenues, million rubles

mln rub. % Direct taxes Indirect taxes

mln rub. % mln RUB %

2007 6955,2 6 951,0 100 5 236,4 75 1 714,6 25 4,2

2008 7 948, 9 7 944,2 100 6 590,8 83 1 353,4 17 4,7

2009 6 288, 3 6 283,9 100 4 749,3 76 1 534,7 24 4,4

2010 7 662, 9 7 659,5 100 5 834,0 76 1 825,5 23 3,4

2011 9 719, 6 9 715,2 100 7 266,0 75 2 449,2 25 4,4

2012 10 958, 2 10 954,0 100 8 179,6 75 2 774,4 25 4,2

2013 11 331,5 11 327,2 100 8 506,5 75 2 820,7 25 4,3

2014 12 674,4 12 670,2 100 9 489,8 75 3 180,4 25 4,2

A slight decline in indirect taxes occurred in 2008, and then revenues from indirect taxes increased.

The Russian taxation system was conceived on the basis that direct taxes would play the role of an economic regulator, while indirect taxes would perform a fiscal function. Indirect taxes have a number of advantages. For example, the number of payers is limited compared to direct

and more controllable. In addition, the state is able, with the help of indirect taxes, to influence the price of goods, and as a result, the structure of public consumption. Considering that the government is always striving to create a system of taxation that could make the process of paying tax to the treasury as invisible as possible, indirect taxes are ideally relevant in this regard.

Therefore, it is not surprising that, despite a slight decrease in the share of indirect taxes in the budget of the Russian Federation, it continues to be impressive: about 7% in the country's GDP, 25% in the consolidated budget of the Russian Federation. In total, there are two types of indirect taxes in Russia - value added tax and excises. VAT plays a key role for the state in this tandem - its share in the tax revenues of the consolidated budget is 18%, the federal budget - 25%.

VAT replaced the turnover tax, which lost its viability due to inflation in the economy. Factors such as:

1. Excessive severity of direct taxation, frequency of direct tax evasion.

2. Constant budget deficit, the need to expand the tax base and improve the efficiency of taxation.

3. The need to improve existing tax systems, bringing them into line with the requirements of a modern market economy.

4. Insignificant dependence on foreign economic conditions.

Indirect taxes are attractive in many respects: they are both repayable when sold to manufacturers and entrepreneurs, and a stable source of revenue for the budget system; in the presence of a set of indirect taxes and differentiated rates for them, we get a progressive, and, consequently, fair method of taxing the incomes of various social groups. Let's take a closer look at each of these factors.

In addition to fiscal capacity, we should also note other properties of modern indirect taxes that are in demand in the current economic conditions.

Indirect taxes applied in conditions of inflation are a more reliable source than direct ones, since they are more abstracted from the formation of price elements and are charged on the price as a whole, which gives a stable corrected income to the budget system.

Indirect taxation filters the secondary cash flow, precipitating into the budgetary system a part of the income that has gone out of direct taxation. Income of individuals that are not subject to direct taxation can be used for consumption, which for the most part is subject to indirect taxes.

gami. Through wholesale and retail trade, part of the unrecorded income is mobilized into the budget system in the form of value added tax, excises, and, until 2004, sales tax.

It should also be noted that on Russian market a significant share in sales is made up of imported products or products with an import-constituent share, so the vast majority of tax revenues from this segment of the economy will come from indirect taxes.

According to the estimated estimates of economists and analysts, "shadow" capital creates more than 49% of GDP. "Shadow" business creates disproportions in the structure of the economy, it stimulates the rapid growth of the consumer sector. Unrecorded income that has gone from direct taxation is subject to indirect taxes.

Reducing the tax burden, in particular, by reducing tax rates on profits and applying a unified rate on personal income, frees up more profits and incomes for the personal disposal of an economic entity, and, consequently, stimulates investment and purchasing activities. Investments indirectly also fall under indirect taxation. Thus, indirect taxes are a stable and inexhaustible source of the budget system.

The assertion that modern indirect taxes are regressive and a heavy burden on buyers, especially on a group of people with low incomes, has lost its relevance; regressivity is the past of pre-revolutionary excises.

The accumulation of indirect taxes in the budget and their prevailing nature in it make it possible for the state to redistribute in favor of low-income strata of the population. In addition to ensuring the functions of the state itself, which includes expenses for the maintenance of the administrative apparatus, defense, etc., the funds received are also used for social benefits, culture, education, scientific expenses, i.e. for those categories of citizens who do not pay high indirect taxes .

It should also be noted that the final consumption expenditure of low-income citizens falls mainly on food. With an increase in income, emphasis is placed on non-food expenditures and expensive services: it is in this part that the imposition of indirect taxes increases, as a result of which the progressiveness of indirect taxes also increases.

Indirect taxes are a necessary part of fair taxation.

They allow for a more even distribution of the tax burden among payers.

Modern indirect taxes are an example of the development of advanced financial thought. It is indirect taxes that have undergone the largest changes in financial practice. Total indirect taxes have acquired the features of progressive and proportional taxes. The democratization of the state puts forward new requirements for taxation, the emphasis is shifted on its progressiveness and proportionality, which makes indirect taxes in demand.

However, despite all the progressiveness and attractiveness, indirect taxation has a number of disadvantages. Thus, VAT is quite difficult to administer, difficulties in substantiating tax deductions and VAT refunds prevent Russian companies from entering the world market, and various kinds of “dirty” schemes are often used in its reimbursement (for example, the creation of “one-day firms”, corrupt activities) . Another problem is the impossibility of filling the significant deficit of regional and local budgets: there are proposals to introduce a sales tax in their favor, but this can be done only if VAT is preserved (otherwise, given its role, the losses of the federal budget will be irreparable). But, according to scientists and experts, such a reform is simply impossible because of the rather high tax burden on the economy and the social resonance resulting from such changes.

Not everything is going smoothly in excise taxation: excise rates are growing, the list of excisable goods is expanding, which cannot but lead to the growth of the shadow economy. According to experts, the market for alcoholic beverages in Russia today, thanks to excise taxes, consists of 35% of legal products, 35% of surrogates, illegal - 30%. Unpaid excise taxes make up the bulk of the profits of "illegal immigrants"; an increase in excise duty, together with leaving the previous level of the minimum selling price, leads to the emergence of wide dumping opportunities. In this regard, we can conclude that the increase in excise rates cannot solve the problem of the budget deficit.

Opponents of indirect taxation argue that it slows down the movement of goods from the seller to the buyer, however, indirect taxes are indifferent in relation to the manufacturer and the seller, subject to quality, demand and a reasonable approach to pricing.

product naming. Of course, at the same time, the price of a product or service becomes heavier, but when it is sold, the accrued tax is reimbursed. In this case, we can talk about the stimulating function of indirect taxes, since an economic entity must produce or sell competitive products in terms of quality and price. In view of the fact that indirect taxes are charged on the formed price and serve only as a reflection of it in a fixed rate, it is possible and necessary to adjust the cost elements, as well as profit, in order to achieve an appropriate demand for products at the offered price, especially since the reduction of direct taxes contributes to this.

An analysis of the ratio of direct and indirect taxation in the Russian Federation, as well as the structure of direct and indirect taxes in the formation of tax revenues of the consolidated and federal budgets of the Russian Federation, showed that not all taxes "work" in full force. We see that the tax on property of individuals does not work in the group of direct taxes. In the group of indirect taxes, the revenues of excise taxes on excisable goods imported into the territory of the Russian Federation are very small.

Despite the fact that in recent years significant changes have been made in the course of reforming the tax system of the Russian Federation, there are still problems that need to be addressed. One of the main problems is the mobilization of direct and indirect taxes in the budget system of the Russian Federation.

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ADVANTAGES AND SHORTCOMINGS OF INDIRECT TAXATION

TURBINA NATALIYA MIKHAYLOVNA Tambov State University named after G. R. Derzhavin, Tambov, the Russian Federation, e-mail: [email protected]

CHEREMISINA TATYANA NIKOLAEVNA Tambov State University named after G. R. Derzhavin, Tambov, the Russian Federation, e-mail: [email protected]

CHEREMISINA NATALIYA VALENTINOVNA Tambov State University named after G. R. Derzhavin, Tambov, the Russian Federation, e-mail: [email protected]

In article the authors considered the problem of finding an optimum ratio of economic efficiency of the taxation and social justice on the example of a ratio of direct and indirect taxation and correctness of elaboration of tax policy on the definition of the fiscal and regulating value of a ratio of direct and indirect taxes. The authors provided an analysis of models of a ratio of direct and indirect taxes in foreign countries and considered features of functioning of such models: the eurocontinental, Anglo-Saxon, Latin American and mixed taxation systems. The authors defined that Russia corresponds to the majority of the signs characteristic of the Latin American model of formation of budgets, gave statistical data that indirect taxes were always and everywhere a highly profitable source of the budget, analyzed the ratio of direct and indirect taxation in Russia from 2007 for 2014 on levels of budgets of the budgetary system: the consolidated budget of the Russian Federation and the federal budget of the Russian Federation and provided data on receipt of direct and indirect taxes to the consolidated budget of the Russian Federation from 2007 for 2014. The authors paid the main attention to a research of a role of indirect taxes: VAT and excises. The authors studied factors of introduction and strong justification in the taxation system of the VAT, considered the fiscal and regulating advantages of indirect taxes to the state, defined indisputable advantages of collection of indirect taxes in the conditions of inflation as they are more abstracted from formation of elements of the price and are charged on the price in general that gives a stable corrected receipt of the income in the budgetary system. Indirect taxation filters a secondary cash flow, being a part of the income which left from under direct taxation in the budgetary system.

Key words: indirect taxation, VAT, excises, ratio of direct and indirect taxation, advantage of indirect taxation

Greetings! Increasingly, the Russian media are hinting at upcoming changes in the tax code. The budgets of the regions are empty - they urgently need to be filled. This time the government decided to seriously take on the "rich". And in a couple of years, we may return to a progressive income tax rate. Or not?

Today we will talk about what a single and progressive scale of income taxation is. And we will try to figure out which system is better for Russia and why.

In modern Russia, income tax was first introduced in April 1916 by decree of Nicholas II - at the height of the First World War. By the way, the ancestor of the modern personal income tax had a progressive scale: from 7% to 12%.

Over the 100 years that have passed since then, the tax calculation system has been revised more than once. Both for the worse and for the better for payers.

Since 1998, Russia has had a progressive scale of taxation. What is the difference between a flat (straight, single) scale and a progressive one? The fact that in the second option, the income tax rate depends on the amount of income of an individual. In the late 90s, it was 12%, 20% and 30%.

In 2001, Chapter 23 of the Tax Code of the Russian Federation "Tax on personal income" was adopted. Income tax has a new name "personal income tax". Payers were divided into two categories: residents and non-residents.

Well, and most importantly: the income tax rate has become the same for everyone - 13%. Since 2001, Russians have given the state a little more than one-seventh wages and premiums, income from the sale of real estate and cars, renting out property and dividends on shares. In general, 13% of almost all income in the family budget.

Certain types of income began to be subject to an increased rate of 35% (for example, lottery winnings). And there was a long list of income completely exempt from personal income tax (pensions, scholarships, alimony, benefits).

In the first two years after the abolition of the progressive scale, income from personal income tax to the budget increased by a third! In the 2000s, the flat system became the hallmark of the Russian economy and one of the few competitive advantage Russian tax system.

Has the flat scale been so effective? Indeed, in other countries it is almost never used. Not everything is so obvious.

The explosive growth in tax revenues was triggered by several factors:

The overall personal income tax rate increased by 1% for most individuals (previously the minimum was 12%, not 13%)
They canceled benefits for the military, judges, prosecutors, customs officers, police and even tax officials. As a result, the number of taxpayers increased by almost a million people.
In 2001, the tax burden on the economy was generally eased (rates for income tax and VAT were cut). This allowed the business to redirect part of the money saved on taxes to pay salaries to employees
Incomes of the population grew every year. Russia has entered a period of “well-fed oil years”

In other words, the effectiveness of the transition from a progressive scale to a single one was greatly exaggerated.

Which countries currently have a single personal income tax scale?

Among the countries of the former USSR, a flat scale is used in Russia, Georgia, Ukraine, Latvia, Lithuania, Estonia, Kazakhstan and Kyrgyzstan. It operates abroad in Hungary, Bulgaria, Albania, Macedonia, Romania, the Czech Republic, Mongolia, Hong Kong and the Channel Islands (Guernsey and Jersey).

The unified taxation scale is also relevant for individual federal subjects major countries. For example, for the Canadian province of Alberta and some US states: Massachusetts, Pennsylvania, Michigan, Indiana and Illinois.

Interesting fact. In developed countries with strong economies, flat taxation is not used!

For example, in France, the income tax rate varies from 5.5% to 75%. The income of the French is divided into eight categories. And income is calculated not per person, but per family. And the non-taxable minimum is 6,011 euros per year.

Examples of other countries with a progressive scale: USA, UK, Sweden, Denmark, Spain, Canada, Germany, China and Israel.

Russia, with its 13% personal income tax, is among the top ten European countries with the lowest income tax rate. Together with Kazakhstan, Belarus, Lithuania and Bulgaria.

Is Russia returning to a progressive scale?

In fact, the direct scale of income taxation is used only in poor European countries. And almost in all countries of the former USSR. Maybe that's why, in the last two years, the issue of switching to a progressive personal income tax scale in Russia has been raised more and more often?

In August 2016, LDPR deputies submitted a sensational bill to the State Duma.

It proposes to exempt Russians with a salary of less than 180,000 rubles a year from income tax. A rate of 13% is recommended to be left for people with an annual income of up to 2.4 million rubles. And for the "rich" they came up with a fixed tax of 289 thousand rubles plus 30% of the amount of income over 2.4 million rubles.

When will the new scale be introduced? So far, they promise that this and similar projects will be considered no earlier than the end of the 2024 elections.

Arguments against progressive taxation

Will there be a progressive personal income tax scale in Russia? The system has both pros and cons. And the cons still outweigh.

The population and business will massively “go into the shadows” and hide their income

The validity of the argument is indirectly confirmed by the results of the tax reform of the 2000s. After the introduction of a flat scale, income from personal income tax increased by 0.7-0.8% of GDP. And many Russian businessmen and individuals, indeed, have ceased to evade taxation.

The introduction of a progressive scale can provoke a reverse process. The rich will again “hide” their income (), and the volume of budget revenues will decrease. And the main financial burden will again fall on the middle class.

Litigation and administrative costs will rise

Why? Because the population will have to declare their income on their own.

Today, a single rate of 13% is kept from almost all incomes of individuals. And tax agents (banks, brokers,) completely take over the "communication" with the tax authorities.

But the progressive scale will force Russians to independently take into account income from various sources, summarize them, fill out a tax return and submit it to the appropriate authorities.

In 2019, neither the population nor the tax authorities are ready for such activity.

The gap between rich and poor regions will deepen

Personal income tax goes not to the federal, but to the regional and local budgets. In other words, Moscow and St. Petersburg will receive even more than the impoverished Ryazan and Yaroslavl regions. Such "discrimination" is sure to exacerbate inter-regional tensions.

Increasing business distrust of government

Since 2001, the president and government of the Russian Federation have promised many times not to change the income tax rate. Breaking promises will cause another surge of business distrust in government and an outflow of private capital abroad.

The flow of investments will decrease - production will decrease - the unemployment rate will jump. As a result, both the rich and the poor will lose.

Let me remind you that the increase in insurance premiums in 2011 was met, to put it mildly, without enthusiasm. And the introduction of a progressive personal income tax scale will only add fuel to the fire.

If not a progressive scale, then what?

Nobody argues with the fact that the personal income tax calculation system in Russia needs to be improved. But it is not necessary to change from a flat scale to a progressive one!

Experts offer other softer options. One of them is to increase the share of tax deductions in the taxable income of individuals.

The essence of tax deductions is fair and obvious. Each of us has daily needs that must be met or we will not survive. And the state should not "tax" that part of the income that goes to maintain a normal standard of living.

All that remains "from above" is the economic benefit of the taxpayer. Which can and should be taxed. Without tax deductions, income tax becomes a "tax for the poor."

Let's consider a hypothetical example. Misha earns 10,000 rubles a month, and Oleg 100,000 rubles. Hypothetically, for 10,000 rubles you can eat, dress in second-hand clothes, buy budget household chemicals for the home and pay for tiny apartment and the Internet.

That is, 10,000 rubles is the minimum amount to maintain life for both Misha and Oleg. But the first spends all his income on current needs, while the second still has 90,000, savings and.

"To be honest" Misha does not have to pay personal income tax at all. What kind of income are we talking about if he spends everything that he earns on essential goods? But Oleg’s “extra” 90,000 rubles is fair to tax - this is a net economic benefit.

In Russia, tax deductions, in fact, are equated to benefits. The liquidators of the consequences of the Chernobyl disaster, participants in the Second World War, heroes of the USSR and the Russian Federation have the right to NV. By the way, the size of tax deductions is appalling: from 500 to 3000 rubles!

Why not upsize tax deduction to an appropriate value? Then it would be possible to subtract HB from the income of an individual and tax the difference at an increased rate. This approach is much fairer than both the uniform and the progressive income tax scale.

And how do you feel about a possible revision of the personal income tax scale in Russia?

The tax system in Russia includes direct and indirect taxes. These are two large groups that make up the tax burden on individuals and legal entities in the country. What are direct taxes and what are indirect taxes? How are they different and why are they needed? A comparison table for these groups is given below, and specific examples are also considered.

The taxation system plays a key role in the formation of the revenue side of the budget. One of the indicators of the financial stability of the state is the level of development of the tax system. Ordinary citizens often confuse the terms tax and fee, perceiving the fee as a tax. However, these are completely different expressions. In order to make it easier for an ordinary citizen to navigate the tax scheme of our state, we will consider the main parameters of taxes, as well as its types.

The domestic taxation system differentiates the tax into two large groups:

straight;
indirect;

Direct tax payment is characterized by the absence of any intermediaries in the establishment of tax payments. With the direct method of tax withdrawal, the amount of payment is set in proportion to the size of the object of taxation. For example, such a common contribution as income tax is set in proportion to the profit received for a certain period.

The indirect system of withdrawal has a completely different structure. An indirect tax, unlike a direct tax, is included in the price of a good or service in advance, and the consumer pays the tax along with the purchase of the item. A prime example of an indirect contribution is VAT. Almost every person at least once in his life paid this tax. It is included in the price of any product. Usually on the check they write "the cost of 100 rubles, including VAT." VAT in this case is an indirect tax.

direct tax- This compulsory contribution, which must be paid by every citizen of the Russian Federation who owns the property subject to such payment. Such property may include both movable and immovable things. For example, the Tax Code establishes a duty on a land plot. According to its regulations, after each year the owner of the land plot is obliged to pay tax. The size is determined taking into account the dimensions of the site, location and other parameters.

It turns out that the law refers the direct model of collection of fees only to the property that is owned by the taxpayer. Such a direct method of levying taxes enables the state to periodically replenish the volume of budgetary funds.

Experts note that the main disadvantage of such a system for receiving contributions to the budget is the ability of the subject to hide his tax returns. Meanwhile, the consequence of deliberate concealment tax information greatly destabilizes the budgetary sphere of the country.

Indirect taxes- these are financial receipts to the state budget, which are formed according to the principle of an allowance for an object or service being sold. The state obliges sellers to include a certain share of the payment in the goods they sell, which does not relate to the company's profit, but goes to the country's budget. In this case, the seller, who establishes such a surcharge, acts as an intermediary. Its profit from this does not decrease or increase, and the state, on the contrary, receives its finances through indirect intervention.

The main advantage of hidden indirect payments is their stability and closeness. In addition, this type of seizure is not affected by various economic forces. In any case, the state can establish a hidden premium on the goods sold. With a decrease in economic indicators, it is thanks to indirect duties that the state manages to rationally replenish budget funds.

One indirect system also has a negative side. Hidden taxation is the same for everyone, and this puts a lot of pressure on the low-income population. Why the low-income? Everything is very simple. When the state raises the bar of excises, the prices for products automatically rise. In order to distribute the financial burden fairly, an initiative was put forward more than once to reduce the added value of essential products. However, so far the system remains unified and there is no talk of any differentiation of the additional payment in the near future.

Differences between direct and indirect taxes

Well, now let's look at the distinguishing features of each type of tax using a special table.

Index	direct tax	indirect tax
Pays directly from the owner of the property	End user pays
Communication system with the state	Straight	Through intermediaries (seller)
Object of taxation	Movable and immovable things of the taxpayer	Realized product or service
Factors that determine the size of the tax rate	Citizen's income, type of taxable property	The price of the product
Degree of openness	The taxpayer knows in advance about the amount of tax and the obligation to pay it	It is hidden, and the consumer often does not know that the price of the goods also includes tax
The complexity of the calculations	Difficult	Simple
Dependence on concomitant factors	Exists	Absent

Examples of direct taxes

The most extensive group of direct taxes is the property tax. These include:

Tax payments that are established for the use of movable and immovable property by legal entities. It is set on an annual basis. This money goes directly to the budget of a particular region.
Taxation of property of individuals - obliges citizens who own land plots or residential premises to pay the annual payment established by the state.
Transport tax. Unlike other payments, the duty initially had a regional character. This means that specific regions, at their own discretion, are entitled to change the tax rate or terms of payment.
Gambling tax. So, all casinos or bookmakers that have a license to conduct gambling business must pay a certain amount of financial resources to the state treasury.
Taxation of profits from mining. In our country, these payments replenish over 30% of the total budget funds. The amount is set depending on the prices of the extracted raw materials. For example, the tax on oil production is set in proportion to current prices per barrel.

Another group also provides a stable flow of finance to the state treasury. These are income taxes. These include:

National payment from the monthly income of an individual. It should be noted that in this regard, domestic citizens are in a more profiled position than the same Europeans. On average, only 13% is withheld from the Russian salary.
Contribution from the profit of legal entities. Each organization that carries out entrepreneurial activity is obliged to pay a tax, the amount of which is determined from the amount of the organization's profit for a certain period.

Examples of indirect taxes

The greatest collection is provided by VAT and excises. excises on Russian legislation are established: for alcoholic beverages, tobacco products, for fuel, etc. By setting an additional price for the finished product, the state establishes a kind of guarantee for the receipt of finance for its budget.

Ministry of Education and Science of the Russian Federation

Branch of St. Petersburg State

University of Engineering and Economics in Vologda

Department of Economics

TEST

Discipline: Taxes and taxation

Topic: Advantages and disadvantages of direct taxes

in the general system of taxes

Is done by a student:

Shpagina Natalia Alexandrovna

Group: FtG-8

Checked by teacher:

Ph.D. Krendelev K.K

Introduction

The aim of the work is to study the advantages and disadvantages of direct taxes in the general system of taxes. The tax system is one of the most important economic regulators, the basis of the financial and credit mechanism of state regulation of the economy.
The effective functioning of the entire national economy depends on how well the relationship between business entities and the state is built to collect part of the income through taxes, and especially through the mechanism of income tax.
As in most developed countries of the world, direct taxes play a huge role in the tax system of the Russian Federation.
At present, this topic is the most relevant, as there is a decrease in the share of direct taxes in budget revenues. This process is natural because it reflects the processes taking place in the economy.

The tax system is one of the main elements of a market economy. It acts as the main instrument of state influence on the development of the economy, determining the priorities of economic and social development. In this regard, it is necessary that the tax system of Russia be adapted to new social relations, consistent with world experience.
The tax system is understood as a set of taxes, duties and fees levied on the territory of the state in accordance with tax code, as well as a set of norms and rules that determine the powers and system of responsibility of the parties involved in tax legal relations.
Taxes are mandatory fees levied by the state from economic entities and citizens at a rate established by law. Taxes are a necessary link in economic relations in society since the emergence of the state. The development and change in the forms of government are always accompanied by the transformation of the tax system.
The tax policy in our country is aimed solely at maintaining the budget, and not the manufacturer. And the adopted changes in the Tax Code, in my opinion, do not remove the tax burden from enterprises, but they have made life easier for wealthy citizens. All this undoubtedly plays a negative role, especially during the transition of the Russian economy to market relations, and also hinders investment, both domestic and foreign. Life has shown the inconsistency of the emphasis placed on the purely fiscal function of the tax system: by robbing the taxpayer, taxes stifle him, thereby narrowing the taxable base and reducing the tax burden.

Direct taxes depend on the personal performance of citizens and are guided by it. They are also of great importance in economically developed countries with a wealthy population with a relatively high educational qualification.

1. Direct taxes: classification and role in the budget

Direct taxes - taxes levied by the state directly on the income or property of the taxpayer (income tax, corporate income tax, inheritance and gift tax, property tax, etc.)

The income tax of enterprises and organizations is the main direct tax. Tax payers: enterprises and organizations that are legal entities; branches and divisions; branches of the Savings Bank of the Russian Federation; companies, firms that carry out entrepreneurial activities. The object of taxation is gross profit, which is the amount of profit (or losses) from the sale of products (works, services), fixed assets, other property of the enterprise and income from unrealized operations, reduced by the amount of expenses on these operations. Profit from the sale of products (works, services) is defined as the difference between the proceeds (excluding VAT and excises) and the costs of production and sales, included in the cost of production. Income from non-sales operations includes funds received free of charge from other enterprises in the absence of joint activities: fixed assets, goods and other property, taxable profit increases by the value of these funds and property, but not below their book value.

Direct taxes encompass taxes on the income of private households and taxes on the sources from which these incomes are obtained. Such sources are labor, land, capital and individual characteristics in the environment of individual private farms.

The most ideal tax is a tax levied directly on the income of payers. But, unfortunately, this is not always possible.

In cases where the incomes received by private farms are obvious and can be accurately measured, such as, for example, salaries to officials, interest on securities, etc., taxes can be levied on these real, also called economic, incomes. But such cases are relatively rare, and most taxes are commensurate with the likely, so-called financial, income of private households. All these direct taxes, in which the scale of taxation is true or supposed income, constitute the group of income taxes, in the narrow sense of the word, while in the broad sense all taxes are income taxes.

Often, however, they try to get around the difficulties encountered in determining taxable income by imposing taxes not on income, but on the sources of it.

Direct taxes also fall into personal taxes and taxes in rem or property.

Each of these types of taxes, in turn, breaks down into several separate taxes, it is personal taxes that can extend to a person’s ability to do physical labor, to his special knowledge, i.e., the ability to work professionally, etc. - property taxes may extend: 1) to immovable property, i.e., to land and houses, 2) to movable property.

When arranging direct taxes, the most significant point is the assessment of objects of taxation. This operation is called the tax cadastre, which must always precede the distribution and collection of direct taxes.

To assess the objects of direct taxes, one can resort to three different methods: 1) self-indications of payers, 2) assessment on certain grounds, 3) assessment in each individual case by administrative bodies or mixed commissions of members from the government and from the payers themselves.

None of the listed methods guarantees absolute accuracy and uniformity of taxation; but most ensures such an assessment in mixed commissions.

In self-testimony, deceit and misreporting are inevitable, so that more conscientious payers will be taxed more heavily than less honest ones. As a result, the system of self-evidence has a harmful effect on people's morality.

Any assessment of property and income by any external signs can only be correct approximately, since in each individual case of taxation, the severity of the latter is influenced by a number of individual circumstances of place and time. In taxation, on the basis of well-known features, it is impossible to take into account all these features. In addition, the adoption of certain signs for the scale of taxation is a completely arbitrary matter.

In assessing taxable objects on a case-by-case basis by administrative authorities, these latter, from little familiarity with local conditions, will often not be able to come to correct conclusions.

The participation of appraisers from the environment of local residents - payers of distributed taxes is very useful here. Of course, members of the contributors often, in their testimony, are guided not so much by the desire for truth as by personal sympathies. But the amendments to this are members from the government and the evaluation tax commissions of higher instances.

According to the method of collection, the layout and salary direct taxes are distinguished.

The former are appointed in a certain amount from a whole group of payers, and these latter distribute them among themselves. Sometimes an amount is assigned for the whole state, which should be collected by tax, then this amount is distributed among individual provinces or provinces, then between smaller administrative divisions, and finally between individual payers.

The spreading method of levying taxes is often associated with the mutual responsibility of payers for their receipt.

This method of levying taxes provides the treasury with a certain income, but it violates the certainty of taxation in relation to individual payers.

Currently, the spreading method of levying direct taxes prevails in France.

Salary or shared taxes are levied on each payer separately.

The salary method of levying taxes requires a more complex organization, but it makes it possible to achieve greater uniformity in taxation.

The collection of direct taxes can be carried out either by government bodies or local governments, or, finally, through the return of their collection to the farm.

At the present time, the system of paying direct taxes is not used in any civilized state, but in the old days it was known, although it was not as common when levying direct taxes as it was with indirect ones.

Direct taxes are divided into the following types:

1 Real:

To the ground;

For real estate;

For securities;

For enterprise funds;

For money capital.

For income;

on property;

On the legal actions of citizens;

For inheritance;

For donation.

Types of direct taxes:

1. Personal income tax. It is levied at personal income tax rates and is usually progressive or proportional.

At all times, governments of various countries have actively resorted to the use of indirect taxes to cover government spending.

Indirect taxes are taxes on spending and the one who spends more pays more, that is, they are taxes on consumption. The payer of such taxes is always the end consumer of products, works and services, buying them at a price that already includes the tax. The peculiarity of these taxes lies in the fact that they are transferred to the budget not by the one who pays, but by the one who collects taxes from buyers when they sell goods to them, perform work, and provide services, which is why they are called indirect taxes.

Indirect taxes are taxes that are economic nature are a premium to the price of goods, works (services) sold. These are value added tax, payments calculated from the proceeds from the sale of products, excises, sales tax, and other fees from proceeds.

To assess the effectiveness of the system of indirect taxes in world practice, various criteria are used, the most important of which are:

- neutrality: the tax should influence the producer's command and the choice of the buyer as little as possible, i.e. economic distortions from the imposition of the tax should be minimal;
- fairness: the tax should cause politically acceptable consequences for the distribution of income, i.e. the tax must be accompanied by corresponding changes in other taxes or in the system of social payments;
- price stability: the tax should not lead to inflationary processes both during the introduction of the tax and in the long term;
- profitability: the tax should provide the state with the necessary revenues and, as far as possible, avoid avoidance and evasion of payment;
- administrative simplicity: the tax should strive to minimize the costs of its calculation, payment by the taxpayer, as well as the collection and control of payment by the tax authority.

By their economic nature, indirect taxes on consumption can be classified as universal (VAT) and special (excises).

In the modern theory of taxation, there are two main systems for levying indirect taxes:

one-step collection:

multistage collection.

Single-stage collection involves the collection of a tax once at the stage of production or distribution. There are three possible subsystems:

producer tax:

wholesale tax;

retail sales tax.

The producer tax is levied only in the manufacturing sector. A particular advantage of this system of collection lies in the low costs of administering the tax, since the number of taxpayers is small, and the objects of taxation are quite impressive. But this advantage is outweighed by a number of disadvantages.

First, a number of manufacturing enterprises are involved in the creation of products. In the future, the inclusion of all these enterprises in the taxation scheme leads to the fact that the tax becomes a "pyramid", and in order to minimize tax pressure, enterprises involved in the same production chain have an incentive to combine. The consequences of such a system are less efficient production and taxation.

Secondly, when using this system of tax collection, its neutrality is not ensured, i.e. the tax burden is unevenly distributed. In particular, the share of tax in the price of identical goods can vary significantly depending on the number of enterprises involved in the production chain.

Wholesale tax is levied at the stage preceding the retail sale. In comparison with the producer tax, not only the shortcomings noted earlier remain here, but the number of taxpayers also increases, which creates additional difficulties in administering the tax.

The retail turnover tax covers not only retailers, but also manufacturers and wholesalers, subject to the delivery of products to direct consumers. The base of taxation is the retail price, which eliminates discrimination between different distribution channels, but the circle of taxpayers is expanding dramatically, which clutters up and, accordingly, complicates the procedure for administering (collecting) the tax.

Unlike single-stage collection, multi-stage collection covers several stages of the production and distribution process and can be subdivided into:

cumulative multi-stage collection;

non-cumulative multi-stage collection.

In a cumulative cascade system, the tax is levied at all stages of production and distribution. The main disadvantages of such a system are:

significant cascade effect, i.e. the tax burden becomes greater, the longer the distance to the consumer. Moreover, the scale of such a “pyramid” is much larger compared to single-stage collection systems, since the tax covers all stages of the movement of products from producer to consumer;

distortion of competition, since the tax burden also increases with a longer production or distribution chain.

As a consequence, such taxes are rightly considered to be the most inefficient and non-marketable, since they are levied without regard to results. economic activity, have a credit mechanism and therefore allow double taxation (for production costs). This reduces the economic effect of public division labor and specialization. Moreover, in order to minimize the tax burden, there is an interest in creating vertically integrated associations covering almost all stages of production, and this is a movement in the opposite direction from the social division of labor and specialization to "subsistence farming".

It should be noted that these shortcomings become dominant in the case of high tax rates.

Paradoxically, but cumulative systems, with all their shortcomings, have become the most widespread and have been preserved for a very long time and are preserved in individual countries to this day as the main systems for collecting indirect taxes. Most likely, this is due to one, but their very important advantage. It consists in providing a relatively high income to the state budget at a sufficiently low tax rate. But when the tax rate goes beyond "low enough", the tax becomes a drag economic development and negate these benefits.

Non-cumulative multi-stage fees are represented by value added tax, which is an important budget revenue source in most countries of the world. It should be noted that the use of this system makes it possible to realize not only the advantage of the cumulative system, but also to avoid almost all of its disadvantages.

The economic significance of this tax is explained by the fact that in countries with a developed market system, VAT contributes to strengthening its balance. This is achieved due to the fact that, along with the fiscal one, it performs a regulatory and stimulating role.

The main advantage of the VAT is that it is able to exert a regulatory effect in curbing the crisis of overproduction and in the accelerated ousting of weak producers from the market. It acts as a demand limiter in case of high degree market saturation, when the consumer reacts to an increase in the price of a product by reducing the volume of consumption, and the producer reacts to a decrease in the price by expanding production.

VAT is an indirect multi-stage tax, as it is included in the price of the goods and ultimately paid by the end consumer. The object is value added, the subjects are legal entities, regardless of industry affiliation, form of ownership.

The main benefits of VAT are:

the use of a single tax rate for all industries or several unified rates for individual industries, preferential rates for individual industries;

ensuring a real level of taxation for all sectors and types of economic activity, including the service sector;

simplicity and reliability of the tax collection procedure for the payer and tax authorities;

a stable source of increasing state revenues;

the possibility of harmonization with taxation in neighboring states.

VAT is also effective as a means of regulating foreign economic activity: to stimulate the growth of export potential, exporting firms are refunded the entire amount of tax paid at previous stages.

Among the negative aspects of VAT, it is necessary to single out its regressive nature for the end consumer and the fact that its introduction involves the use of a new calculation of production costs. Moreover, its application leads to an increase in administrative costs due to the expansion of the circle of taxpayers.

The assessment of the place and role of VAT in the economy of Belarus is ambiguous. Practitioners believe that this tax is the best way to meet budgetary needs, while analysts criticize it for being too fiscal, undeveloped tax base and high stakes.

In the Republic of Belarus, one-stage systems for levying indirect taxes are also applied. We are talking about taxes from the manufacturer (excises) and from the retailer (sales taxes, taxes on certain types of services).

Advantages of indirect taxes:

1. Indirect taxes are characterized by ease of payment and regularity of receipts to the budget. Withholding and controlling the receipt of indirect taxes does not require expansion - the tax apparatus.
2. Since indirect taxes increase state revenues due to population growth or its welfare, they are more beneficial for countries that are progressing economically.
3. Taxes affect aggregate consumption by making a product more expensive. At the same time, the restraining influence of the state on the consumption of products harmful to the health of the nation and morality is especially important.
4. Direct taxes, from the point of view of the layman, are paid to the state for nothing, while indirect tax is veiled in the price of the goods, and even if the payer realizes that the price has been increased by the tax, he still receives the necessary product in return.
5. For the final consumer, indirect taxes are convenient in that they are determined by the amount of consumption, convenience of payment in time, proximity to the place of payment, lack of coercive nature, no loss of time for the contribution, do not require the accumulation of certain amounts.

The disadvantages of indirect taxes include the following:

1. In fact, the payment of the tax is carried out by the head of the family, and is formed by all family members. Direct taxes impose an average tax capacity, while indirect taxes carry out the principle of self-taxation, since with the help of indirect taxes the payer himself regulates the individual tax capacity.
2. Since the right to levy indirect taxes is almost never disputed, the object of political struggle, as a rule, is income tax or income tax.
3. Indirect taxes fall on individuals disproportionately to their wealth or income, placing an undue burden on the underpaid.
4. Indirect taxes in the conditions of developed market relations limit the amount of business profits, since in a competitive environment it is not always possible to increase the price by the amount of indirect taxes, especially in cases of an increase in the rates of these taxes.

A direct tax is usually called one that is directly paid by the person that the state intends to impose.

Direct taxes - taxes, which include mandatory payments, the source of payment of which is profit (income). The list of direct taxes includes profit and income tax, income tax, real estate tax, single tax With individual entrepreneurs and other individuals, gambling business tax, local taxes calculated from profit.

Finding the optimal combination of direct and indirect taxation is one of the main strategic problems in tax policy. It is known that in developed countries market economy the tax system tends to direct taxes, which directly implement not only the fiscal, but also the distribution function of taxation.

Historically, direct taxes appeared earlier than indirect ones. Direct taxation is the simplest and oldest form of taxation. The initial types of direct taxes were: tithe, capitation or head tax.

It should be noted that direct taxes can historically be divided into three main types. The object of the first type of taxes is material capital, while certain types of income are subject to taxation (land tax, property tax, tax on inheritances and gifts). The object of the second type of taxes is the independent manifestation of personal capital, such as personal earnings, housing, profession (income tax, property tax of citizens, dividends). The object of taxes of the third type is the total activity of material, monetary and personal capital in production (profit tax, tax on fishing). As you can see, direct taxes are based on either a person, or income, regardless of sources, or property, regardless of income.

Adherents of direct taxation consider it the most progressive form, since, firstly, income and general income are taken into account. financial position the payer, his property, and secondly, there are certain difficulties in shifting direct taxes to other persons or in evading their payment.

Currently, direct taxes form the basis of tax systems in developed countries, as they have a number of advantages over other types of taxes. The main advantages of direct taxation are as follows:

1. Economic - direct taxes make it possible to establish a direct relationship between the income of the payer and his payments to the budget.
2. Regulatory - direct taxation is an important financial lever for regulating economic processes (investment, capital accumulation, aggregate consumption, business activity, etc.).
3. Social - direct taxes contribute to the distribution of the tax burden in such a way that large tax expenses have those members of society who have higher incomes. This principle of taxation is considered the most fair.

However, the disadvantages of direct taxes should also be noted:

1. Organizational - a direct form of taxation requires a complex mechanism for levying taxes, as it is associated with a rather complex methodology for accounting and reporting.
2. Control - control of receipt of direct taxes requires a significant expansion of the tax apparatus and the development modern methods accounting and control of payers.
3. Police - direct taxes are associated with the possibility of tax evasion due to imperfect financial control and the presence of trade secrets.
4. Budget - direct taxation requires a certain development of market relations, since only in the conditions of the real market can the real market price and, consequently, real incomes (profit) be formed, but losses can also occur with the same probability. Therefore, direct taxes cannot be a stable source of budget revenues.

In addition to indirect taxes, a significant contribution to the formation of budget revenues is made by direct taxes and fees, the list of which includes profit and income tax, income tax, real estate tax, single tax on individual entrepreneurs and other individuals, local taxes calculated from profit.