Directions of implementation of social-oriented approach in taxation of individuals income in the Russian Federation

Bikbaeva Inna Valerievna

Personal income tax plays an important role in generating revenues of the consolidated budget of the Russian Federation. It also acts as a tool for redistributing income between different categories of the population. At the present stage, the fiscal thrust of the personal income tax prevails over its social component. The article analyzes the urgency of reforming the mechanism of personal income taxation in the Russian Federation. The analysis of statistical data of the level of socio-economic inequality in the society is carried out. The main arguments in favor of the insolvency of the flat scale of taxation of incomes of individuals are given. Proposed measures that promote the implementation of a socially-oriented approach in the taxation of individuals through the introduction of progressive taxation of personal income and the introduction of an annual indexation of tax deductions for personal income tax. Reforming the mechanism of taxation of income of individuals is based on the balance of interests of taxpayers and the state: providing conditions for reducing the level of inequality in society and maintaining a sufficient level of income in the state budget. The risks of transition to progressive taxation of incomes of physical persons and possible ways of their minimization are considered.

Keywords:income taxation, personal income tax, progressive taxation, fair taxation, standard of living.