Reforming individual income tax is the crucial factor in stabilizing the budgetary system

The reason for writing this article was a statement of the First Deputy Finance Minister Tatyana Nesterenko who claimed that in 2017 the government would run out of money to pay salaries to budgetary sphere employees [3]. Indeed, the reserves accumulated in the fat years are running out1. The Government of the Russian Federation finds the following sources to cover the growing budget deficit: first, privatization of the remnants of state property, which will create a momentary effect and will not become a stable channel for filling the treasury; and second, major cuts on spending that on the eve of the electoral cycle can aggravate protest moods of Russians caused by a sharp deterioration of the standard of living. The majority of representatives of the expert and scientific community, including ISEDT RAS employees, consider the urgent need to reform the system for taxation of individual income tax by introducing a progressive tax scale as one of the main solutions to the growing imbalance of the budgetary system...