Investigation of consequences of changes in taxation of individuals in the Russian Federation in the light of the tax reform - 2025
Abstract. The importance of personal income tax is determined by the following: the tax is the most important source of budget revenues, it forms the monetary income of the population. These tasks are implemented by performingthe following functions: fiscal, regulatory, social. In the practice of taxation of personal income, various systems were used: a progressive system until 2001, a flat scale until 2021, since 2021 a progressive scale of 15% for employees whose income exceeds 5 million rubles per year. Since 2025, a progressive tax rate scale from 13 to 22 percent will be introduced, standard deductions for the second and third child will be doubled, and a tax cashback will be provided for families with two or more children whose per capita income does not exceed 1.5 subsistence minimums. The relevance of the research topic is associated with the planned tax reform of personal income tax. The purpose of the article is to study changes in the taxation of personal income, the functions of the tax, their impact on reducing income inequality, eliminating differentiation of regions, improving the standard of living and quality of life of the population, the demographic situation in the regions and the country. The following methods were used: analysis and synthesis, grouping, generalization, the method of studying phenomena in dynamics, tabular, etc. Based on official data from Rosstat, the Ministry of Finance of the Russian Federation, and reports from the Federal Tax Service of Russia, the dynamics of personal income tax receipts to regional budgets, the role of benefits and deductions for personal income tax on the level of average wages of employees as the main component of cash income of the population in the context of federal districts are considered. The study found that the current personal income tax system is not perfect and does not ensure fairness in distribution relations.
Keywords: salary, personal income tax, progressive tax rate, budget revenues, minimum salary, structure of monetary income, tax deductions.
Highlights:
- the consequences of the flat scale of taxation of personal income that has existed for a long period of time arethecontinuingsignificantgap between high-paid and low-paid groups of the population, a high degree of differentiation of regions in terms of salaries due to the weakening of state regulation of salaries; inefficiency of personal income tax deductions as a result of their failure to perform stimulating functions;
- income inequality persists in terms of salaries, and a significant proportion of the population with incomes below the subsistence level remains;
- the amounts of standard, social, and property deductions are not justified, do not take into account the actual prices on the service market, and are not indexed, which reduces their effectiveness;
- with the introduction of progressive personal income tax rates, the fiscal function of the tax is being strengthened to the detriment of the stimulating, social functions;
the existing low level of salaries and the increasing tax burden on individuals, with few tax deductions, do not stimulate an improvement in the demographic situation in the country.
Nikolay Z. Zotikov - Chuvash State University named after I.N. Ulyanov, Cheboksary, Russia