State regulation of the economy and support for entrepreneurship

Taxes which include duties and charges, as well as other payments forms the tax system and ap-pear the main instrument of economic regulation. Tax regulators perform a set of functions by which the state has an impact on the reproduction processes. The procedure of tax collection is the implementation of the state monopoly in relations with business entities. This is inherent in the mechanism of state regulation. The problem is that such a monopoly creates contradictions between the state as a carrier of monopoly and economic entities that seek to self-realization on equal terms. The understanding of the mechanism of tax regulation should be done through the realizing the complex intertwining of relations between the state and all taxpayers, as well as the ability to participate and subjects of these relations, and the effective application of the tax policy of the tax system in the state. In the article the authors identify the main directions of improving tax regulation which include: reducing the tax burden in General; simplification and streamlining of tax legislation; increasing budget revenues through the bringing out of the shadow of business.