Pub Date : 2018-08-30DOI: 10.15826/JTR.2018.4.2.048
V. Ivanov, N. Lvova, N. Pokrovskaia, S. Naumenkova
The article is devoted to the problematic issues of tax incentives for Russian companies. The main prerequisite of the research is that the domestic practice of tax incentives does not meet the interests of the state, since it is in clear contradiction with the declared principles of economic development. The provided tax privileges should promote the investment activity of business. However, tax incentives are often offered to those enterprises that are not able to use them effectively. Justification of tax benefits requires identifying enterprise’s investment activity factors, the level of which is largely determined by the corporate life cycle stage and industry specificity. Hypotheses about the importance of corporate age and economic activity, formulated for the purposes of this study, have been empirically confirmed. It was proved that the investment activity of Russian enterprises demonstrated different dynamics in the conditions of the economic crisis. In the manufacturing industry, in particular, most enterprises increased the volume of fixed assets, while in the spheres of petroleum products, dairy products, chemical products, communications on the basis of wire technologies, there was a decline in investment activity. The change in investment activity in the period under study was due to various factors for both enterprises of different industries and enterprises of the same industry characterized by different corporate ages. The results obtained let us conclude that a unified approach to tax incentives for enterprises’ investment activity cannot be justified. In the opinion of the authors, “targeted” tools of tax incentives are more efficient. Highlights 1. Tax incentives should meet the interests of the state, contributing to the development of the economy. However, in Russia it is increasingly reduced to tax benefits, which increase in volume, but do not bring the desired effect, including the fact that they do not contribute to the growth of investment activity of enterprises 2. It was revealed that the investment activity of the enterprise depends to a significant extent on the stage of the life cycle and industry specificity, which, in the opinion of the authors, should be considered as the determinants of tax incentives. Accordingly, the authors offer the hypotheses about the importance of the corporate age and the sphere of financial and economic activity in shaping the factors of Russian enterprise investment activity 3. Investment activity models for young, adult and old manufacturing enterprises, as well as companies for the manufacture of coke and refined petroleum products, dairy products, chemicals and chemical products, and communications based on wire technologies have been constructed. It is shown that these models have independent significance, and the factors of investment activity really depend on the corporate age and industry specificity 4. Thus, it is argued that the system of tax incentives in Russia requires d
{"title":"Determinants of tax incentives for investment activity of enterprises","authors":"V. Ivanov, N. Lvova, N. Pokrovskaia, S. Naumenkova","doi":"10.15826/JTR.2018.4.2.048","DOIUrl":"https://doi.org/10.15826/JTR.2018.4.2.048","url":null,"abstract":"The article is devoted to the problematic issues of tax incentives for Russian companies. The main prerequisite of the research is that the domestic practice of tax incentives does not meet the interests of the state, since it is in clear contradiction with the declared principles of economic development. The provided tax privileges should promote the investment activity of business. However, tax incentives are often offered to those enterprises that are not able to use them effectively. Justification of tax benefits requires identifying enterprise’s investment activity factors, the level of which is largely determined by the corporate life cycle stage and industry specificity. Hypotheses about the importance of corporate age and economic activity, formulated for the purposes of this study, have been empirically confirmed. It was proved that the investment activity of Russian enterprises demonstrated different dynamics in the conditions of the economic crisis. In the manufacturing industry, in particular, most enterprises increased the volume of fixed assets, while in the spheres of petroleum products, dairy products, chemical products, communications on the basis of wire technologies, there was a decline in investment activity. The change in investment activity in the period under study was due to various factors for both enterprises of different industries and enterprises of the same industry characterized by different corporate ages. The results obtained let us conclude that a unified approach to tax incentives for enterprises’ investment activity cannot be justified. In the opinion of the authors, “targeted” tools of tax incentives are more efficient. Highlights 1. Tax incentives should meet the interests of the state, contributing to the development of the economy. However, in Russia it is increasingly reduced to tax benefits, which increase in volume, but do not bring the desired effect, including the fact that they do not contribute to the growth of investment activity of enterprises 2. It was revealed that the investment activity of the enterprise depends to a significant extent on the stage of the life cycle and industry specificity, which, in the opinion of the authors, should be considered as the determinants of tax incentives. Accordingly, the authors offer the hypotheses about the importance of the corporate age and the sphere of financial and economic activity in shaping the factors of Russian enterprise investment activity 3. Investment activity models for young, adult and old manufacturing enterprises, as well as companies for the manufacture of coke and refined petroleum products, dairy products, chemicals and chemical products, and communications based on wire technologies have been constructed. It is shown that these models have independent significance, and the factors of investment activity really depend on the corporate age and industry specificity 4. Thus, it is argued that the system of tax incentives in Russia requires d","PeriodicalId":53924,"journal":{"name":"Journal of Tax Reform","volume":null,"pages":null},"PeriodicalIF":0.4,"publicationDate":"2018-08-30","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"45131221","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Pub Date : 2018-08-30DOI: 10.15826/JTR.2018.4.2.049
E. Iadrennikova, Y. Leontyeva, I. Mayburov
Excessive consumption of strong spirits in today’s Russia continues to generate a number of negative effects. This makes it highly relevant to change consumers’ preferences so that they choose low-alcohol drinks, wine and beer. Beer is the most promising drink in terms of its capacity to replace strong alcohol in the structure of consumption. Russia’s beer industry needs additional fiscal incentives. The purpose of this study is to analyze the taxation of beer in Russia and propose improvements to beer taxes. The authors proceed from a hypothesis that by improving the system of excise duties on alcoholic drinks in Russia by means of beer excise tax rates that vary based on alcohol content would make it possible to change the price structure of beer of various strengths. That would encourage consumers to shift their preferences in favor of lower-alcohol products. The research method includes the analysis of excise duty revenues in Russia as a percentage of total government revenue as well as the structure and dynamics of excise duty revenues in Russia by type of alcohol. Special attention has been paid to beverages with low alcohol content and beer. A comparative analysis has been conducted of beer tax rates in Russia and the EU. An unconventional market study has been done of beer sales points to get a picture of the beer sales structure by alcohol content. Highlights 1. The introduction of beer excise tax rates that vary based on alcohol content in Russia will bring down the price of lower-alcohol products and increase the price of higher strength beers 2. Price differentiation depending on alcohol content will encourage consumers to shift their preferences in favor of lower-alcohol beers 3. The proposed mechanism of calculating beer tax is more fair and rational both for brewers and consumers. From the state’s perspective, the changes to beer taxes would result in lower tax revenue, but would help preserve public health and reduce healthcare expenditures thanks to a decrease in the consumption of beer with high alcohol content For citation Iadrennikova E. V., Leontyeva Yu. V., Mayburov I. A. Analysis of and Improvements of Excise Taxation on Beer in Russia. Journal of Tax Reform, 2018, vol. 4, no. 2, pp. 142–156. DOI: 10.15826/jtr.2018.4.2.049. Article info Received June 20, 2018; accepted July 24, 2018
{"title":"Analysis of and Improvements of Excise Taxation on Beer in Russia","authors":"E. Iadrennikova, Y. Leontyeva, I. Mayburov","doi":"10.15826/JTR.2018.4.2.049","DOIUrl":"https://doi.org/10.15826/JTR.2018.4.2.049","url":null,"abstract":"Excessive consumption of strong spirits in today’s Russia continues to generate a number of negative effects. This makes it highly relevant to change consumers’ preferences so that they choose low-alcohol drinks, wine and beer. Beer is the most promising drink in terms of its capacity to replace strong alcohol in the structure of consumption. Russia’s beer industry needs additional fiscal incentives. The purpose of this study is to analyze the taxation of beer in Russia and propose improvements to beer taxes. The authors proceed from a hypothesis that by improving the system of excise duties on alcoholic drinks in Russia by means of beer excise tax rates that vary based on alcohol content would make it possible to change the price structure of beer of various strengths. That would encourage consumers to shift their preferences in favor of lower-alcohol products. The research method includes the analysis of excise duty revenues in Russia as a percentage of total government revenue as well as the structure and dynamics of excise duty revenues in Russia by type of alcohol. Special attention has been paid to beverages with low alcohol content and beer. A comparative analysis has been conducted of beer tax rates in Russia and the EU. An unconventional market study has been done of beer sales points to get a picture of the beer sales structure by alcohol content. Highlights 1. The introduction of beer excise tax rates that vary based on alcohol content in Russia will bring down the price of lower-alcohol products and increase the price of higher strength beers 2. Price differentiation depending on alcohol content will encourage consumers to shift their preferences in favor of lower-alcohol beers 3. The proposed mechanism of calculating beer tax is more fair and rational both for brewers and consumers. From the state’s perspective, the changes to beer taxes would result in lower tax revenue, but would help preserve public health and reduce healthcare expenditures thanks to a decrease in the consumption of beer with high alcohol content For citation Iadrennikova E. V., Leontyeva Yu. V., Mayburov I. A. Analysis of and Improvements of Excise Taxation on Beer in Russia. Journal of Tax Reform, 2018, vol. 4, no. 2, pp. 142–156. DOI: 10.15826/jtr.2018.4.2.049. Article info Received June 20, 2018; accepted July 24, 2018","PeriodicalId":53924,"journal":{"name":"Journal of Tax Reform","volume":null,"pages":null},"PeriodicalIF":0.4,"publicationDate":"2018-08-30","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"43647746","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Pub Date : 2018-08-30DOI: 10.15826/JTR.2018.4.2.047
O. Belomyttseva, L. Grinkevich, A. Grinkevich, S. Bobek, P. Tominc
The paper addresses the specificities of tax incentives in the form of tax reliefs designated for individual investors, who invest in bonds in the Russian Federation. The need for the use of tax incentives to encourage individual investors to purchase bonds is regarded as an integral aspect of the bondization, announced by the Bank of Russia. The objective of this paper is to analyze the specific features of the investment tax relief implementation in the Russian Federation and to reveal issues that remain controversial and require particularization. It was found that stimulation of investment through tax is widely studied by foreign scientists; however, it is almost completely disregarded in Russia. The following tax innovations related to investments of individual Russian investors were analyzed: tax relief for coupon income, derived from corporate bonds; investment tax deductions (individual investment account and long-term capital gains exemption); long-term capital gains exemption for securities of the high-tech (innovation) sector of economy. Reconciliation schemes for the above-mentioned reliefs were identified. Insufficiency of quantitative data for the effectiveness evaluation of tax relief for individual investors was revealed, which was explained by the short validity period of this relief. The authors proved the absence of a uniform system tax relief instruments for individual investors and found that bond holders have more tax relief options, compared to share holders of other investment instruments. In this context, it was proposed to make amendments to the Tax Code of the Russian Federation in order to ensure tax equalization with relation to derivative instruments, designed on the basis of bonds, mutual fund units). In addition, it was recommended to adjust a number of technical aspects, connected with tax relief application and to evaluate the effectiveness of the reliefs under study. Highlights 1. A tendency towards emergence of a tax relief system for individual investors is revealed in the context of the active development of the bond market in the Russian 2. In the Russian Federation, there are a number of tax reliefs for bond holders, including coupon income exemption from tax and investment tax deductions, which are not bound into a uniform system 3. Reconciliation of tax reliefs for individual investors is possible; however, there are issues that remain controversial and require particularization 4. The current tax reliefs for individual investors require improvement. It is important to make certain amendments to the Tax Code of the Russian Federation and evaluate the effectiveness of tax reliefs For citation Belomyttseva O. S., Grinkevich L. S., Grinkevich A. M., Bobek S., Tominc P. Tax incentives for bond-oriented individual investors: evidence from the Russian Federation. Journal of Tax Reform, 2018, vol. 4, no. 2, pp. 108–124. DOI: 10.15826/jtr.2018.4.2.047 Article info Received June 6, 2018; accepted July 12, 2018
{"title":"Tax incentives for bond-oriented individual investors: evidence from the Russian Federation","authors":"O. Belomyttseva, L. Grinkevich, A. Grinkevich, S. Bobek, P. Tominc","doi":"10.15826/JTR.2018.4.2.047","DOIUrl":"https://doi.org/10.15826/JTR.2018.4.2.047","url":null,"abstract":"The paper addresses the specificities of tax incentives in the form of tax reliefs designated for individual investors, who invest in bonds in the Russian Federation. The need for the use of tax incentives to encourage individual investors to purchase bonds is regarded as an integral aspect of the bondization, announced by the Bank of Russia. The objective of this paper is to analyze the specific features of the investment tax relief implementation in the Russian Federation and to reveal issues that remain controversial and require particularization. It was found that stimulation of investment through tax is widely studied by foreign scientists; however, it is almost completely disregarded in Russia. The following tax innovations related to investments of individual Russian investors were analyzed: tax relief for coupon income, derived from corporate bonds; investment tax deductions (individual investment account and long-term capital gains exemption); long-term capital gains exemption for securities of the high-tech (innovation) sector of economy. Reconciliation schemes for the above-mentioned reliefs were identified. Insufficiency of quantitative data for the effectiveness evaluation of tax relief for individual investors was revealed, which was explained by the short validity period of this relief. The authors proved the absence of a uniform system tax relief instruments for individual investors and found that bond holders have more tax relief options, compared to share holders of other investment instruments. In this context, it was proposed to make amendments to the Tax Code of the Russian Federation in order to ensure tax equalization with relation to derivative instruments, designed on the basis of bonds, mutual fund units). In addition, it was recommended to adjust a number of technical aspects, connected with tax relief application and to evaluate the effectiveness of the reliefs under study. Highlights 1. A tendency towards emergence of a tax relief system for individual investors is revealed in the context of the active development of the bond market in the Russian 2. In the Russian Federation, there are a number of tax reliefs for bond holders, including coupon income exemption from tax and investment tax deductions, which are not bound into a uniform system 3. Reconciliation of tax reliefs for individual investors is possible; however, there are issues that remain controversial and require particularization 4. The current tax reliefs for individual investors require improvement. It is important to make certain amendments to the Tax Code of the Russian Federation and evaluate the effectiveness of tax reliefs For citation Belomyttseva O. S., Grinkevich L. S., Grinkevich A. M., Bobek S., Tominc P. Tax incentives for bond-oriented individual investors: evidence from the Russian Federation. Journal of Tax Reform, 2018, vol. 4, no. 2, pp. 108–124. DOI: 10.15826/jtr.2018.4.2.047 Article info Received June 6, 2018; accepted July 12, 2018","PeriodicalId":53924,"journal":{"name":"Journal of Tax Reform","volume":null,"pages":null},"PeriodicalIF":0.4,"publicationDate":"2018-08-30","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"46042410","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Pub Date : 2018-08-30DOI: 10.15826/JTR.2018.4.2.050
J. Steshenko, A. Tikhonova
The article analyzes the prospects and opportunities for using integral indicators to evaluate the effectiveness of tax incentives. The following key indicators are selected: the integral index of 13 tax incentive indicators’ growth rate; the multidimensional mean calculated on the basis of trade turnover of the Eurasian Economic Union; a complex rating evaluation of the effectiveness of regional tax incentives. Tax incentive indicators are understood as those indices that best reflect the economic performance of companies in a certain business sector. The goal of the article is to determine the priority areas of using tax incentives based on the comparative theoretical analysis of integral indicators for evaluating their effectiveness. Research methodology includes the analysis of tax incentives’ indicators calculated on the basis of official statistics and characterizing budgetary, social and economic effectiveness. Besides, the authors use the instruments of the regression and correlation analysis. It is determined that the coefficient approach is best used to evaluate time oriented tax incentives, while the absolute approach –socially or spatially oriented tax incentives. The authors use their own methodology to prove that in 2011–2016 tax incentives for agriculture (from the industry-based perspective) and for research and development (from the target-based perspective) were effective. The use of the complex rating of tax incentives’ effectiveness at the regional level showed that high effectiveness was achieved only in two subjects of the Russian Federation, while absolute effectiveness was not achieved in any of them. At the same time, most regions stayed in the range of sufficient and low effectiveness. Research results can be used by the Ministry of Finance and the Government of the Russian Federation when developing ways of improving the taxation policy. Highlights 1. The coefficient approach is most commonly used to evaluate tax incentives, although it is advisable to use the absolute approach through the calculation of the multidimensional mean for some social and territorial tax incentives 2. To analyze the effectiveness of tax incentives, the authors selected thirteen tax incentive indicators that reflect the social and economic development of an industry. They include budgetary revenues by tax type, the number of workplaces in the full-time equivalent, GVA, growth rate of investments in fixed assets, etc. 3. It is advisable to evaluate the effectiveness of the instruments of industry-based and target (specific) tax incentives by using the integral index of the tax incentive indicators’ growth rate 4. It is suggested that the multidimensional mean should be used to evaluate the impact of reduced tax rates on VAT and excise duties on the volume of trans-border trade of the Eurasian Economic Union countries 5. The regional tax policy of stimulating production should be evaluated through the complex rating of the effectiveness of regio
{"title":"An integral approach to evaluating the effectiveness of tax incentives","authors":"J. Steshenko, A. Tikhonova","doi":"10.15826/JTR.2018.4.2.050","DOIUrl":"https://doi.org/10.15826/JTR.2018.4.2.050","url":null,"abstract":"The article analyzes the prospects and opportunities for using integral indicators to evaluate the effectiveness of tax incentives. The following key indicators are selected: the integral index of 13 tax incentive indicators’ growth rate; the multidimensional mean calculated on the basis of trade turnover of the Eurasian Economic Union; a complex rating evaluation of the effectiveness of regional tax incentives. Tax incentive indicators are understood as those indices that best reflect the economic performance of companies in a certain business sector. The goal of the article is to determine the priority areas of using tax incentives based on the comparative theoretical analysis of integral indicators for evaluating their effectiveness. Research methodology includes the analysis of tax incentives’ indicators calculated on the basis of official statistics and characterizing budgetary, social and economic effectiveness. Besides, the authors use the instruments of the regression and correlation analysis. It is determined that the coefficient approach is best used to evaluate time oriented tax incentives, while the absolute approach –socially or spatially oriented tax incentives. The authors use their own methodology to prove that in 2011–2016 tax incentives for agriculture (from the industry-based perspective) and for research and development (from the target-based perspective) were effective. The use of the complex rating of tax incentives’ effectiveness at the regional level showed that high effectiveness was achieved only in two subjects of the Russian Federation, while absolute effectiveness was not achieved in any of them. At the same time, most regions stayed in the range of sufficient and low effectiveness. Research results can be used by the Ministry of Finance and the Government of the Russian Federation when developing ways of improving the taxation policy. Highlights 1. The coefficient approach is most commonly used to evaluate tax incentives, although it is advisable to use the absolute approach through the calculation of the multidimensional mean for some social and territorial tax incentives 2. To analyze the effectiveness of tax incentives, the authors selected thirteen tax incentive indicators that reflect the social and economic development of an industry. They include budgetary revenues by tax type, the number of workplaces in the full-time equivalent, GVA, growth rate of investments in fixed assets, etc. 3. It is advisable to evaluate the effectiveness of the instruments of industry-based and target (specific) tax incentives by using the integral index of the tax incentive indicators’ growth rate 4. It is suggested that the multidimensional mean should be used to evaluate the impact of reduced tax rates on VAT and excise duties on the volume of trans-border trade of the Eurasian Economic Union countries 5. The regional tax policy of stimulating production should be evaluated through the complex rating of the effectiveness of regio","PeriodicalId":53924,"journal":{"name":"Journal of Tax Reform","volume":null,"pages":null},"PeriodicalIF":0.4,"publicationDate":"2018-08-30","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"49441254","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Pub Date : 2018-08-30DOI: 10.15826/JTR.2018.4.2.051
L. Lykova
This paper examines the possibility of reintroducing a progressive personal income tax in the Russian Federation and presents quantitative estimations of the possible outcomes of such a move. The main sources of statistical data for the analysis of distributions of taxpayers in terms of their income are considered (different resources of the Federal State Statistic Service and the Federal Tax Service statistics). The shortcomings of the existing statistical information were shown. Under the absence of officially published data on the distributions of taxpayers by income received, a lognormal distribution curve is simulated. The estimations of the distribution curve are based at the National Accounts data. Several systems of income tax brackets, rates and models of tax deductions are tested on these simulated data. The parameters of the tax burden shift onto the tenth decile of taxpayers and 1% of the highest-income taxpayers, a decrease in the decile ratio (in terms of disposable income) as well as changes in budget revenues according to tax scale options are estimated. The estimations show (1) none of the tested models of tax brackets, rates and deductions provides a principal reduction of the decile ratio (for disposable income); (2) a potentially significant reduction of the tax burden on the poorest groups of the population and the growth of the level of tax paid by high-income groups are possible; (3) it is possible to decrease the tax burden on the low income groups together with a rise of the budget revenue. The article concludes that it is necessary to test different variants of tax brackets, rates and deductions in real life circumstances and not on simulated data when progression in personal income tax is reinstated. Highlights 1. The lognormal distribution curve based at the National Accounts data is generated to evaluate the distribution of PIT (NDFL) taxpayers in terms of taxable income 2. Testing of the different progressive tax models (brackets, rates and deductions) based on this lognormal distribution curve allowed to make quantity assessments of the possible shift of the tax burden onto the tenth decile of taxpayers and to1% of the highest-income taxpayers 3. It is demonstrated that the progressive tax rates make it possible to decrease the tax burden on the low income groups together with a rise of the budget revenue For citation Lykova L. N. A return to progressive personal income tax in the Russian Federation: some estimations. Journal of Tax Reform, 2018, vol. 4, no. 2, pp. 174–187. DOI: 10.15826/jtr.2018.4.2.051 Article info Received June 12, 2018; accepted July 20, 2018
{"title":"A return to progressive personal income tax in the Russian Federation: some estimations","authors":"L. Lykova","doi":"10.15826/JTR.2018.4.2.051","DOIUrl":"https://doi.org/10.15826/JTR.2018.4.2.051","url":null,"abstract":"This paper examines the possibility of reintroducing a progressive personal income tax in the Russian Federation and presents quantitative estimations of the possible outcomes of such a move. The main sources of statistical data for the analysis of distributions of taxpayers in terms of their income are considered (different resources of the Federal State Statistic Service and the Federal Tax Service statistics). The shortcomings of the existing statistical information were shown. Under the absence of officially published data on the distributions of taxpayers by income received, a lognormal distribution curve is simulated. The estimations of the distribution curve are based at the National Accounts data. Several systems of income tax brackets, rates and models of tax deductions are tested on these simulated data. The parameters of the tax burden shift onto the tenth decile of taxpayers and 1% of the highest-income taxpayers, a decrease in the decile ratio (in terms of disposable income) as well as changes in budget revenues according to tax scale options are estimated. The estimations show (1) none of the tested models of tax brackets, rates and deductions provides a principal reduction of the decile ratio (for disposable income); (2) a potentially significant reduction of the tax burden on the poorest groups of the population and the growth of the level of tax paid by high-income groups are possible; (3) it is possible to decrease the tax burden on the low income groups together with a rise of the budget revenue. The article concludes that it is necessary to test different variants of tax brackets, rates and deductions in real life circumstances and not on simulated data when progression in personal income tax is reinstated. Highlights 1. The lognormal distribution curve based at the National Accounts data is generated to evaluate the distribution of PIT (NDFL) taxpayers in terms of taxable income 2. Testing of the different progressive tax models (brackets, rates and deductions) based on this lognormal distribution curve allowed to make quantity assessments of the possible shift of the tax burden onto the tenth decile of taxpayers and to1% of the highest-income taxpayers 3. It is demonstrated that the progressive tax rates make it possible to decrease the tax burden on the low income groups together with a rise of the budget revenue For citation Lykova L. N. A return to progressive personal income tax in the Russian Federation: some estimations. Journal of Tax Reform, 2018, vol. 4, no. 2, pp. 174–187. DOI: 10.15826/jtr.2018.4.2.051 Article info Received June 12, 2018; accepted July 20, 2018","PeriodicalId":53924,"journal":{"name":"Journal of Tax Reform","volume":null,"pages":null},"PeriodicalIF":0.4,"publicationDate":"2018-08-30","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"48221568","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Pub Date : 2018-05-19DOI: 10.15826/JTR.2018.4.1.046
I. Mayburov, A. Kireenko
The article is devoted to the study of the tax reforms in modern Russia. Tax reforms carried out since the beginning of the 1990s are analyzed in connection with the cyclical repetition of the stages of the electoral process, or the so-called electoral cycle. The research methodology includes the calculation of indicators characterizing the change in the tax system and the analysis of their dynamics at various stages of the electoral cycle. The main quantitative and qualitative indicators are: the tax burden on the economy as a whole (nominal and real); the tax burden on individual elements of GDP (on wages, on gross profit, on actual final consumption); the number of changes made to tax legislation; terms and procedure of tax amnesty. Three stages of tax reforms have been identified (1993–1996, 1997–2000, 2001–present) for research in modern history of Russia. The first two stages of tax reforms directly coincided with the electoral cycles. The third modern stage of tax reforms is implemented during several electoral cycles. The revealed influence of elections on the tax system of Russia results in a cyclical increase of the tax burden on the main elements of GDP in the first years of cycles and lowering of the tax burden in the final years of electoral cycles. In the elective period for elections to the State Duma, the nominal tax burden on the economy is always reduced. In the election year and next year of the electoral cycle, there is an increase in effective rates for profit, consumption and labor. In the final years of the electoral cycle, there is a decrease in effective rates for profit, consumption and labor. Thus, the results of the study confirmed the assumption on the existence of a relationship between tax reforms and elections in Russia and the possibility of increasing the tax burden in the short term Highlights 1. The relationship between tax reforms and electoral cycles in Russia is unambiguously present. The intensity of the relationship is determined by the degree of competition in the elections 2. The electoral cycles for the elections to the State Duma of the Russian Federation have a stronger impact on tax reforms in Russia 3. Legislative activity on reforming the tax system of the Russian Federation is associated with the stages of the electoral cycle (declining in the election year in the State Duma and increasing in the pre-election period) 4. Tax amnesties are unambiguously connected with the electoral process and their conduct is confined to the elective period For citation Mayburov I. A., Kireenko A. P. Tax reforms and elections in modern Russia. Journal of Tax Reform, 2018, vol. 4, no. 1, pp. 73–94. DOI: 10.15826/jtr.2018.4.1.046 Article info Received March 12, 2018; accepted April 15, 2018
{"title":"Tax reforms and elections in modern Russia","authors":"I. Mayburov, A. Kireenko","doi":"10.15826/JTR.2018.4.1.046","DOIUrl":"https://doi.org/10.15826/JTR.2018.4.1.046","url":null,"abstract":"The article is devoted to the study of the tax reforms in modern Russia. Tax reforms carried out since the beginning of the 1990s are analyzed in connection with the cyclical repetition of the stages of the electoral process, or the so-called electoral cycle. The research methodology includes the calculation of indicators characterizing the change in the tax system and the analysis of their dynamics at various stages of the electoral cycle. The main quantitative and qualitative indicators are: the tax burden on the economy as a whole (nominal and real); the tax burden on individual elements of GDP (on wages, on gross profit, on actual final consumption); the number of changes made to tax legislation; terms and procedure of tax amnesty. Three stages of tax reforms have been identified (1993–1996, 1997–2000, 2001–present) for research in modern history of Russia. The first two stages of tax reforms directly coincided with the electoral cycles. The third modern stage of tax reforms is implemented during several electoral cycles. The revealed influence of elections on the tax system of Russia results in a cyclical increase of the tax burden on the main elements of GDP in the first years of cycles and lowering of the tax burden in the final years of electoral cycles. In the elective period for elections to the State Duma, the nominal tax burden on the economy is always reduced. In the election year and next year of the electoral cycle, there is an increase in effective rates for profit, consumption and labor. In the final years of the electoral cycle, there is a decrease in effective rates for profit, consumption and labor. Thus, the results of the study confirmed the assumption on the existence of a relationship between tax reforms and elections in Russia and the possibility of increasing the tax burden in the short term Highlights 1. The relationship between tax reforms and electoral cycles in Russia is unambiguously present. The intensity of the relationship is determined by the degree of competition in the elections 2. The electoral cycles for the elections to the State Duma of the Russian Federation have a stronger impact on tax reforms in Russia 3. Legislative activity on reforming the tax system of the Russian Federation is associated with the stages of the electoral cycle (declining in the election year in the State Duma and increasing in the pre-election period) 4. Tax amnesties are unambiguously connected with the electoral process and their conduct is confined to the elective period For citation Mayburov I. A., Kireenko A. P. Tax reforms and elections in modern Russia. Journal of Tax Reform, 2018, vol. 4, no. 1, pp. 73–94. DOI: 10.15826/jtr.2018.4.1.046 Article info Received March 12, 2018; accepted April 15, 2018","PeriodicalId":53924,"journal":{"name":"Journal of Tax Reform","volume":null,"pages":null},"PeriodicalIF":0.4,"publicationDate":"2018-05-19","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"46654102","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Pub Date : 2018-05-19DOI: 10.15826/JTR.2018.4.1.042
V. Vishnevsky, V. Chekina, В. П. Вишневский, В. Д. Чекина
The Fourth Industrial Revolution and the accelerated development of cyber-physical technologies lead to essential changes in national tax systems and international taxation. The main areas in which taxation meets cyber-physical technologies are digitalization, robotization, M2M and blockchain technologies. Each of these areas has its own opportunities and problems. Three main approaches towards possible solutions for these new problems are identified. The first is to try to apply taxation to new cyber-physical technologies and products of their application. This approach includes the OECD’s Action 1 Plan on Base Erosion and Profit Shifting. It also includes the spread of traditional taxes on new objects — personal data, cryptocurrencies, imputed income of robots. The second is to replace digital transactions and shortfalls in revenues by traditional objects of taxation in the form of tangible assets and people and / or increase tax pressure (including by improving tax administration with use of Big Data) and the degree of progressiveness of taxes already levied on such objects. The third approach is to set a course on building a new tax space with smart taxes based on real-time principles, smart contracts and Big Data. This implies a transition to automatic taxation using blockchain technologies, which focus on the functions of applying distributed ledgers of business transactions in real-time. At present, the general trends are such that the first and second are prevalent, which is manifested in an increase in the relative importance of property, sales and employment taxes. Concerning the third approach, any movement in this direction is still facing a number of technical and other problems and is thus being discussed mainly at the conceptual level Highlights 1. Production technologies and taxes are dialectically linked. Therefore, the accelerated development of cyber-physical systems leads to substantial transformations of national taxes and international taxation 2. It is established that there are three main areas where taxes meet new cyber-physical technologies and where new fiscal opportunities and problems arise — digitalization, robotics, M2M and blockchain technologies 3. Three main approaches to solving emerging problems of taxation are stressed: the first entails extended tax coverage of new cyber-physical technologies and products of their use; the second involves the replacement of digital transactions and shortfalls in revenues by objects of taxation in the form of tangible assets and people; while the third envisages the construction of a new tax space with smart taxes based on real-time principles, smart contracts and Big Data For citation Vishnevsky V. P., Chekina V. D. Robot vs. tax inspector or how the fourth industrial revolution will change the tax system: a review of problems and solutions. Journal of Tax Reform, 2018, vol. 4, no. 1, pp. 6–26. DOI: 10.15826/jtr.2018.4.1.042 Article info Received March 14, 2018; accepted Apr
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Pub Date : 2018-05-19DOI: 10.15826/JTR.2018.4.1.045
F. Söllner
This article examines the taxation of road traffic in Germany and makes a proposal for its reform. The policy-oriented approach used here is inspired by the tradition of economists like Richard A. Musgrave in the United States or Gunter Schmolders in Germany who always sought to integrate fiscal theory and fiscal practice. Thus, our considerations are guided by three basic principles of taxation which are well-founded theoretically and, at the same time, flexible enough to deal with issues of policy: fairness, efficiency and practicability. They are used, at first, to show what a systematic taxation of road traffic would look like. Then, actual road traffic taxation in Germany is described and measured against this standard. It turns out that none of the different road traffic taxes or fees in Germany conform to the principles of taxation. Therefore, finally, a proposal for reform is made which is discussed not only in terms of fairness and efficiency but also in terms of political acceptability and of compatibility with European law. It is found that the reform proposed complies with the principles of taxation and European law, but that, at present, it may be difficult to win public acceptance for one of its parts Highlights 1. It is argued that road traffic taxation, like taxation in general, ought to follow certain basic principles, such as fairness, efficiency or practicability. According to these principles, taxes on road traffic can only be justified in the form of fees paid by road users and in the form of steering taxes in order to combat air pollution and congestion 2. Since road traffic taxation in Germany does not comply with the principles of taxation, a proposal for reform is put forward. As a first step, the motor vehicle tax is to be abolished and the energy tax is to be transformed into a tax on CO2 emissions; as a second step, the truck toll and the infrastructure charge are to be merged into a comprehensive toll 3. A European approach to the reform of road traffic taxation is needed, because any unilateral reform may possibly cause competitive disadvantages for German transport companies and obstacles to the flow of traffic in Europe For citation Sollner F. Road traffic taxation in Germany: the present system, its problems and a proposal for reform. Journal of Tax Reform, 2018, vol. 4, no. 1, pp. 57–72. DOI: 10.15826/jtr.2018.4.1.045 Article info Received February 22, 2018; accepted March 29, 2018
本文对德国道路交通税收进行了考察，并提出了改革建议。本文采用的政策导向方法受到了美国经济学家理查德·马斯格雷夫(Richard A. Musgrave)或德国经济学家冈特·施莫尔德斯(Gunter Schmolders)等经济学家传统的启发，他们一直寻求将财政理论与财政实践相结合。因此，我们的考虑以三个基本的税收原则为指导，这些原则在理论上是有充分根据的，同时在处理政策问题时也足够灵活:公平、效率和实用性。起初，它们被用来展示对道路交通系统征税会是什么样子。然后，根据这一标准对德国的实际道路交通税进行了描述和衡量。事实证明，德国不同的道路交通税或收费都不符合税收原则。因此，最后提出了一项改革建议，该建议不仅从公平和效率方面进行了讨论，而且从政治上的可接受性和与欧洲法律的兼容性方面进行了讨论。研究发现，拟议的改革符合税收原则和欧洲法律，但目前，它可能很难赢得公众的接受，其中一个部分。有人认为，道路交通税，像一般的税收，应该遵循一些基本原则，如公平，效率或实用性。根据这些原则，道路交通税只能以道路使用者支付费用的形式和以转向税的形式来证明是合理的，以对抗空气污染和拥堵。由于德国的道路交通税不符合税收原则，因此提出了改革建议。作为第一步，机动车税将被废除，能源税将转变为二氧化碳排放税;第二步，卡车收费和基础设施收费将合并为综合收费。需要对道路交通税的改革采取欧洲的办法，因为任何单方面的改革都可能使德国运输公司在竞争中处于不利地位，并对欧洲的交通流动造成障碍。引用Sollner F.德国的道路交通税:现行制度、问题和改革建议。《税收改革研究》，2018年第4期。1，第57-72页。DOI: 10.15826/jtr.2018.4.1.045收于2018年2月22日;2018年3月29日录用
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Pub Date : 2018-05-19DOI: 10.15826/JTR.2018.4.1.043
S. S. Bykov, H. Zimmermann, Степан Сергеевич Быков, Хольгер Циммерманн
Tax expenditures are well known in all countries. However, they are of low repute, not only because politicians often use them to disguise relief for interest groups in the tax code, but also because they are seen as less targeted and less efficient than direct expenditure. In this article, two hitherto neglected aspects of tax expenditures are discussed. The first of these is tax shifting and what it implies in terms of outcomes. The second and more important is the problem caused by tax expenditures in the area of intergovernmental relations, which arises from the effects of tax expenditures in the intergovernmental system. In the article, these effects are highlighted and described in detail: (1) vertical effects of tax expenditures, reflecting the impact of tax expenditures on budgets at different levels; (2) horizontal externalities, which characterize the effects of tax expenditures on budgets at the same level; and (3) the negative impact of tax expenditures on equalization processes. All of these effects are systematized in various ways; together, they present a coherent approach for later empirical country studies Highlights 1. The effects of tax shifting on tax expenditure are described according to a systematic approach. The outcome of shifting consists in changes in the pattern of the intended beneficiaries 2. Criteria are developed for judging the various vertical effects of tax expenditures in the system of intergovernmental relations. A three-dimensional tax expenditure classification schema was developed in order to systematize these effects 3. Horizontal externalities from tax expenditure within intergovernmental relations are demonstrated in a comprehensive way 4. It is demonstrated that tax expenditures may disturb the intended equalization pattern. For instance, tax expenditures for personal equalization and grants for regional equalization may lead to sizable discrepancies between the outcomes of these two channels For citation Bykov S. S., Zimmermann H. Tax expenditure as a problem in intergovernmental relations. Journal of Tax Reform, 2018, vol. 4, no. 1, pp. 27–44. DOI: 10.15826/jtr.2018.4.1.043 Article info Received March 2, 2018; accepted April 4, 2018
税收支出在所有国家都是众所周知的。然而，它们名声不佳，不仅因为政客们经常利用它们来掩饰对税法中利益集团的救济，还因为它们被认为比直接支出更缺乏针对性和效率。本文讨论了税收支出的两个迄今为止被忽视的方面。第一个问题是税收转移，以及它对结果的影响。第二个也是更重要的问题是政府间关系领域的税收支出问题，这是由于税收支出对政府间制度的影响而产生的。本文对这些效应进行了重点分析和详细描述:(1)税收支出的纵向效应，反映了税收支出在不同层次上对预算的影响;(2)横向外部性，表征税收支出对同一水平预算的影响;(3)税收支出对均等化过程的负面影响。所有这些影响都以不同的方式系统化;它们共同为以后的经验性国别研究提供了一种连贯的方法。根据系统的方法描述了税收转移对税收支出的影响。转移的结果是预期受益者的形态发生了变化。为判断政府间关系系统中税收支出的各种垂直效应，制定了标准。为了使这些影响系统化，开发了一个三维税收支出分类图式。综合论证了政府间关系中税收支出的横向外部性4。结果表明，税收支出可能会扰乱预期的均衡模式。例如，用于个人平等的税收支出和用于地区平等的拨款可能导致这两个渠道的结果存在相当大的差异。引用Bykov S. S.， Zimmermann H.税收支出作为政府间关系中的问题。《税收改革研究》，2018年第4期。1，第27-44页。DOI: 10.15826/jtr.2018.4.1.0432018年4月4日接受
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Pub Date : 2018-05-19DOI: 10.15826/JTR.2018.4.1.044
A. Belov
This article analyzes the economic effects of public investments in Russia. The correlation between gross regional product growth rates and public capital accumulation has been identified. It has been found that regional investments stimulate growth much better than federal ones. Therefore, the transfer of federal resources to regional levels, as well as a more precise tailoring of investment policies to the needs of individual territories, should contribute to a rise in productivity and an increase in regional growth rates. The findings show that investments from subnational budget sources are closely correlated to regional tax revenues. Therefore, the fine-tuning of the revenue-sharing mechanism in the larger fiscal federalism framework, the expansion of the regional tax base, the improvement of tax collection and tax administration systems, and other related measures represent the main focus areas for expanding investment opportunities at the provincial level. In the long term, this way of regional development is expected to be more efficient and sustainable compared to the current emphasis on the implementation of large developmental projects at the expense of the federal budget. These aspects of Russia’s experience seems to be valid for the entire Eurasian continent, as seen by the scale of infrastructure projects initiated there in recent years under the framework of “One belt-One Road” and other development initiatives Highlights 1. Subnational investments from regional budgets positively influence the rate of regional development, whereas the role of federal investment, most often, is negative or statistically insignificant 2. The fine-tuning of the revenue-sharing mechanism, the expansion of the regional tax base, the improvement of tax collection and tax administration systems, and other related measures represent the main focus areas for expanding investment opportunities at the provincial level 3. Since federal investments are considered inferior to regional ones in terms of provincial growth stimulation, transferring most of the investment resources to the subnational level could be beneficial for overall growth rates 4. Comprehensive use of local resources for federal construction projects allows to maximize the macroeconomic effects not only in Russia, but also in several Eurasian states, currently implementing large-scale infrastructure development initiatives For citation Belov A. V. Tax Revenues, public investments and economic growth rates: evidence from Russia. Journal of Tax Reform, 2018, vol. 4, no. 1, pp. 45–56. DOI: 10.15826/jtr.2018.4.1.044 Article info Received February 10, 2018; accepted March 23, 2018
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