Bykova A.Yu., Tikshaeva L.V. Progressive Taxation Scale as a Tool for Smoothing Social Inequality

Abstract: The subject of the research is the scheme of charting tax on personal income and income differences among population of the country. The object of the research is the personal income tax. The authors of the article focus on such aspects as the value of personal income tax for the budget of the Russian Federation and scheme for calculating personal income tax. They also underline the fact that the existing progressive scale for different types of profits does not improve the social inequality which creates social tension among population of the country. Special attention is paid to income differences. The theoretical and methodological basis of the research consists of provisions of theoretical economics, taxation theory and methods of personal income taxation. In the process of their research the authors have used such research methods as statistical observation, analysis and synthesis, comparison and generalization. The main conclusion of the research is that for the present moment it would be a fair assumption to say that Russia is at risk regarding the level of income differences in the country and the main problem of personal income taxation is the low efficiency of regulating the income ineuquality. According to the authors, implementation of the progressive personal income tax rates would significantly lower income differences. Progressive taxation would contribute to increased support of low-income citizens by increasing the tax burden on people with high incomes, thereby to reduce inequality of income distribution in the country. The general idea proposed by the authors is that implementation of the progressive taxation scale will allow to develop a fairer personal income taxation system in Russia.    

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