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Progressive tax as a requirement for the sustainability of the national systems of income distribution

Vol. 15, Iss. 9, SEPTEMBER 2019

Received: 23 July 2019

Received in revised form: 7 August 2019

Accepted: 22 August 2019

Available online: 16 September 2019

Subject Heading: ECONOMIC POLICY OF THE STATE

JEL Classification: G28, H24, H31

Pages: 1604–1616

https://doi.org/10.24891/ni.15.9.1604

Ermakova E.R. National Research Ogarev Mordovia State University (MRSU), Saransk, Republic of Mordovia, Russian Federation
eka-tsulaya@yandex.ru

https://orcid.org/0000-0001-8464-9605

Subject The article studies the taxation of personal income as part of the national system for income distribution.
Objectives The research provides the rationale for implementing the progressive tax on personal income in Russia so that the fiscal system could ensure the equality principle.
Methods In addition to scientific abstraction, unity of logic and history, analysis and synthesis, deduction and induction, comparison, generalization, etc., the research also involves special methods, such as the index method and modeling of economic processes.
Results I provide the rationale for the progressive tax on personal income in Russia and suggest introducing a five-tiered progressive tax scale. The article assesses additional fiscal proceeds, which will be remitted consequently. This is proved to reduce the disparity of people’s income, which is showed by the resultant Gini index. I plotted the possible curve of income distribution by quintile of population.
Conclusions and Relevance Reforming the personal income taxation and introduction of progressive tax rates will gradually even the socio-economic inequality of the Russian people and double fiscal revenue. The findings can be used to articulate key aspects of the economic (fiscal) policy.

Keywords: socio-economic inequality, national income distribution system, State redistribution policy, progressive tax

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