The potential of tax impact on the economic inequality of citizens in Russia

In Russia, the possibilities of smoothing inequality through taxes have not been implemented, despite the consistently high inequality, its acute perception by citizens and attention to the problem at the highest level of government. The aim of the study is to determine the possibilities for smoothing the economic inequality of citizens in Russia with the help of tax instruments. The hypothesis of the study is that the set of instruments of income, indirect and property taxation of citizens in Russia has a significant unrealized potential for smoothing economic inequality. To test the hypothesis, we use correlation and regression analysis and decomposition of tax instruments according to areas (income, property and indirect) and explore the dependence of inequality indicators on tax tools used for smoothing inequality. Based on the data from Rosstat, Federal Tax Service, World Bank, OECD, Credit Suisse and the World Inequality Database, a Data Set was formed which includes 2.6 thousand indicators. The calculations were performed using the Data Analysis Toolpak in MS Excel. The relevance of personal income tax deductions was assessed by using sociological survey dat. It was established that the current tax instruments do not help to smooth inequality in Russia, and sometimes, on the contrary, lead to its growth. It seems advisable to smooth inequality within the framework of income taxation by increasing the progression of personal income tax and introducing a tax-free minimum in conjunction with the minimum wage, increasing the share of social tax deductions. In the field of property taxes, it is advisable to increase the tax burden for owners of expensive or many objects of property, and provide the targeting of tax benefits. In terms of indirect taxes, it is expedient to reduce VAT on goods and services that make up the bulk of consumption expenses of the least well-off citizens, for example, housing and communal services, and to increase VAT on items that form the basis of consumption of the rich, for example, the return of the 20% rate on recreation, hotels, cafes and restaurants. The potential of tax administration in smoothing inequality is determined by the possibilities of ensuring the completeness of taxation of current income, capital and consumption of the most affluent citizens.