Subject. The article deals the latest changes in the Russian legislation regarding the taxation of personal income that is planned to be legally effective as of January 1, 2025. Objectives. The article aims to examine historical, theoretical, and practical foundations of personal income taxation to determine the feasibility of introducing a progressive scale. Methods. The study draws on methods of comparison, observation, and scientific abstraction. Results. We established that the indicators of budget revenues from the payment of personal income tax tended to increase both at progressive and flat tax rate. The performance of the payment under study is influenced by such factors as employment, income received by an individual, manufacturing sector expansion, and creation of new jobs. The findings can be applied in the work of executive authorities, budgetary, and other organizations, including the educational process of academic institutions. Conclusions. The transition to progressive scale of taxation can lead to undesirable consequences, since there is a high risk of hiding citizens' incomes. The order of differentiation of tax rates requires economic thinking. A system should be created to eliminate social inequality by taking into account the income level of individuals.
Keywords: income tax, income of citizens, progressive taxation, tax rate
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