Progressive scale of personal income tax as a condition for ensuring social justice

Nikolay Z. Zotikov
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Nikolay Z. Zotikov: Chuvash State University named after I.N. Ulyanov

Economic Consultant, 2024, issue 4, 34-48

Abstract: Introduction. The relevance of the progressive scale for personal income tax is driven by the need to ensure social justice, reduce inequality, and enhance the efficiency of the tax system. It promotes a fairer distribution of the tax burden, stimulates social stability, and contributes to the funding of government programs. The study is aimed at examining the role and significance of personal income tax in shaping the revenues of consolidated budgets of the constituent entities of the Russian Federation by federal districts, as well as its impact on indicators characterizing the social sphere. Materials and methods. The study employs general scientific methods of cognition: analysis, synthesis, generalization, grouping, comparison, tabular method, and others. The study is based on official data from the Federal State Statistics Service and the Federal Tax Service of the Russian Federation. Results. It has been established that personal income tax fulfills its fiscal function and serves as the primary source of revenue for local and regional budgets. However, its social function has currently been lost. This is evidenced by the following: in four federal districts, home to approximately half of the country’s population, wages are below the national average; the income decile ratio and Gini coefficient show no improvement; tax deductions and benefits under personal income tax fail to fulfill their social function or ensure social justice, thereby exacerbating social stratification. Conclusion. Given the emerging unfavorable demographic situation and external challenges related to Western sanctions, it is necessary to strengthen labor motivation. In this context, it is important to consider foreign positive experiences in implementing a progressive scale for personal income taxation, which can effectively promote social justice. Key research indicators include budget tax revenues, household monetary income, average monthly wages, income decile ratios and Gini coefficients, personal income tax deductions, the share of the working-age population, and features of progressive taxation of family income.

Keywords: progressive scale; personal income tax; social justice (search for similar items in EconPapers)
JEL-codes: N24 (search for similar items in EconPapers)
Date: 2024
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Persistent link: https://EconPapers.repec.org/RePEc:ris:statec:021466

DOI: 10.46224/ecoc.2024.4.3

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