On the issue of introducing a progressive tax rate in personal income tax: advantages and disadvantages

Kochetkov Nikolai Dmitrievich, Krapiventsev Ilya Alexandrovich, Lipatova Inna Vladimirovna

the possibility of introducing a progressive tax rate on personal income is one of the key issues of discussion in the scientific, political and economic communities of Russia. This interest is due not only to the fiscal efficiency of the tax system, but also to the need to reduce social inequality and changes in the global environment. To solve this issue, a comprehensive study of the advantages and disadvantages of switching from a flat personal income tax scale to a progressive one is necessary. The article examines various expert views and opinions in the field under study, presents statistical data that allow us to assess the effectiveness of a particular decision, studies the dynamics of socio-economic indicators in Russia and in the world, and models the possible consequences of the introduction of tax progression. In addition, specific Russian draft laws and the experience of foreign countries were studied. Based on the study, conclusions are presented about the Russian society's lack of readiness for tax reform today and the need for careful preparation of a possible solution to changes in the taxation of personal income. recommendations for preparation are given (improving working conditions, improving the business climate, solving the issue of tax administration, making changes in budget policy, solving geopolitical problems) and the possibility of making such a decision is estimated (changes are not possible until 2024). At the moment, the expediency of switching from a flat personal income tax scale to a progressive one is not confirmed, since the shortcomings of implementing the reform prevail over its advantages. But in the future, this need exists.

Keywords:progressive tax, tax system, personal income tax, progressive tax scale, tax reform, social inequality