Trends in taxation of personal income: Russian and foreign experience

Economic Annals-ХХI: Volume 157, Issue 3-4(1), Pages: 41-43

Citation information:
Sevryukova, L., & Belousova, S. (2016). Trends in taxation of personal income: Russian and foreign experience. Economic Annals-XXI, 157(3-4(1)), 41-43. doi: https://doi.org/10.21003/ea.V157-0012

Larisa Sevryukova
PhD (Economics),
Associate Professor,
Southwest State University
94, 50 Let Oktyabrya Str., Kursk, 305040, Russia
sevriukova-lar@yandex.ru

Svetlana Belousova
PhD (Economics),
Associate Professor,
Southwest State University
94, 50 Let Oktyabrya Str., Kursk, 305040, Russia
bsn275@mail.ru

Trends in taxation of personal income: Russian and foreign experience

Abstract. The authors provide a comparative analysis of theoretical and practical approaches to taxation of personal income in the Russian tax system and foreign tax systems. In our research we used a systems approach, methods of statistical, economic and comparative analysis in order to study taxation of individual income.

Primarily, the increase of budgets revenues at the expense of income tax is possible by introducing higher tax rates with respect to individuals with high income. Most of the foreign countries with developed economies apply a progressive personal income tax rate scale, which fully corresponds to the principle of social justice, i.e. the rich pay more in absolute and relative terms.

Based on the comparative analysis of theoretical and practical approaches to taxation of personal income in the Russian and foreign tax systems, the authors propose to improve personal income taxation in Russia. Income tax must not only fulfill a fiscal function, but also a social one.

Keywords: Tax on Individual Income (Personal Income Tax); Tax Deductions; Progressive Scale; Tax-Exempt Minimum

JEL Classification: F65; Z23

DOI: https://doi.org/10.21003/ea.V157-0012

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Received 12.12.2015