Ways of reforming personal income tax in modern Russia

The article has presented the model of reforming the personal income tax in the modern Russia. It has been proposed to enhance the progressiveness of taxation by means of providing the taxpayer with the standard tax deductions in the amount of subsistence minimum of the appropriate category of population for himself, children and the spouse-dependent of the taxpayer. The limit of the revenue for providing the deduction should amount to 12-fold of the average salary in the region. While the minimum amount of the salary should be increased to the amount of subsistence minimum, and the tax rate should be set at the level of 15 %. Thus, the high social justice of taxation will be achieved, the effect of the «cold progression» will be eliminated and the redistribution function of the personal income tax will be enhanced.

personal income tax, redistribution function of the personal income tax, progressiveness of taxation, standard tax deduction, subsistence minimum, dependents of the taxpayer, income limit for the provision of deduction, personal income tax rate, tax burden, «the break-even point» of taxation, effect of cold progression