The regulatory function of taxes at the micro level: theory and practical implementation in Russia's tax policy at the present stage

Регулирующая функция налогов на микроуровне: теория и практическая реализация в налоговой политике России на современном этапе

Natalia N. Azhogina (Ажогина Н.Н.) and Elena N. Parshina (Паршина Е.Н.)
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Natalia N. Azhogina (Ажогина Н.Н.): Russian Presidential Academy of National Economy and Public Administration, South-Russian Institute of Management
Elena N. Parshina (Паршина Е.Н.): Russian Presidential Academy of National Economy and Public Administration, South-Russian Institute of Management

State and Municipal Management Scholar Notes, 2025, vol. 4, 101-110

Abstract: Introduction. The relevance of the study is due to the fact that the current stage of tax reform is characterized by the activation of the fiscal function. In the context of regulatory impact, the increase and redistribution of the tax burden causes a reaction of economic agents at the micro level. The article describes the transformation of the behavior of economic agents in response to changes in the amount of taxes, their rates, methods of calculation and the possibilities of applying benefits. The regulatory power of the state, involving the implementation of tax policy, leads to a distortion of economic incentives at the micro level and the achievement of a new balance, taking into account changes in the tax system. The purpose of the study is to predict the reaction of market agents in adapting to changes in tax policy (tightening the tax burden, analyzing the options for applying tax benefits and other preferences). Methods. The research methods include structural analysis of the economy at the micro level, description, comparison, and establishing cause-and-effect relationships in building a model of market agents' reactions to changes in the tax system, which generates and redistributes monetary income to various spending areas, which are an independent source of government revenue. Results. Possible options for manipulating direct and indirect taxes are presented, which allow market agents to maximize their results (government revenue, consumer satisfaction, and producer profit). Conclusions. At the moment, our country is facing the urgent problem of forming a balanced budget that can finance defense expenditures in the context of a special military operation. At the same time, the tightening of the tax burden should minimize the distortion of economic incentives in the behavior of economic agents, avoid social conflicts and destructive behavior, and, given the current situation of sanctions pressure, support domestic producers, especially in strategically important sectors. Therefore, when formulating the state tax policy, it is crucial to choose the optimal option for redistributing the tax burden in society, which will simultaneously address all of the above-mentioned goals.

Keywords: tax; tax system; market agent behavior; changes in demand; changes in preferences; changes in production; tax benefits; tax regulation; taxation of small and medium-sized enterprises; special tax regimes; insurance contributions (search for similar items in EconPapers)
Date: 2025
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