Home  Journals  Financial Analytics: Science and Experience  29(215) - 2014 August

The percentage of reinvested profits and output-capital ratio as the factors of reducing the tax burden and income growth in the budget

Available online: 2 August 2014

Subject Heading: EFFECTIVENESS OF ECONOMIC POLICY

JEL Classification: 

Pages: 56-63

The article investigates the flexible tax system, which envisages that the tax burden reduction for industrial enterprises is directly related to the increase in the share of reinvested profits. The author points out that the reduction of the tax burden is achieved by lowering the tax rates on profit at 1, 5 to 2 points. The paper emphasizes that the total tax burden is reduced by 0, 3-0, 4 percentage points. The study of flexible tax schemes is carried out by using the methodology of calculation of the added value. The article identifies the boundary conditions under which budgetary efficiency of flexible tax schemes in part of income tax in the consolidated budget of the territorial entity of the Russian Federation turns out to be higher than the efficiency of the budgetary efficiency of tax scheme with the maximum profit tax rate, which is equal to 20%.

Keywords: GDP growth, reinvestment, tax rate, earnings, regional, tax, legislation, budgetary, effectiveness

References:

1. Butov D.V. Nalogovaya nagruzka: raschet i zakonnoe snizhenie [Tax burden: calculation and legitimate reduction]. Planovo-ekonomicheskii otdel – Economic and planning department, 2011, no. 5, pp. 15–18.
2. Novikov Vad. V., Novikov Vyach. V. Kak povysit' VVP? [How to increase the GDP?] Izvestiya VolgGTU – Proceedings of VolgSTU, 2014, no. 4, pp. 23–28.
3. Novikov Vad. V., Novikov Vyach. V. Povyshenie doli reinvestiruemoi pribyli kak atribut snizheniya nalogovogo bremeni i rosta dokhodov v byudzhet [Increase in the percentage of reinvested profits as an attribute of the tax burden reduction and budget revenue increase]. Finansovaya analitika: problemy i resheniya – Financial analytics: science and experience, 2014, no. 23, pp. 11–17.
4. Law of the Volgograd region “On Zones of economic development in the territory of the Volgograd region” of June 3, 1997 № 121-OD. (as amended by Law № 1208-OD of April 3, 2006) (In Russ.)

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