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The principle of justice in the taxation of individuals in the national tax system

Author(s) Bechko P.K., Candidate of Economics, , Uman National University of Horticulture, Ukraine
Vlasyuk S.A., , , Uman National University of Horticulture
Anishchenko G.Yu., , , Uman National University of Horticulture
Lysa N.V., Candidate of Economics Sciences, , Uman National University of Horticulture, Ukraine
Шумило Т. В., , ,
Category Economics
year 2023 issue Issue number 102. Part 2
pages 101-111 index UDK 336.2:338.246.025.2
DOI 10.32782/2415-8240-2023-102-2-101-111 (Link)
Abstract It is difficult to establish clear and specific criteria for the category of "justice" in the tax system because it depends so much on the historical period in which the tax system operates the economic development of the society, as well as the social and legal status of the taxpayer and other equally important factors. However, fiscal science and the practice of constructing and administering tax systems have made progress over the past few centuries in establishing theoretically the nature of equity in taxation. The purpose of this study is to theoretically and methodologically substantiate the principle of equitable taxation of individuals in Ukraine's indigenous tax system. It was found that the justice of the tax system depends directly on the procedures for the calculation and payment of taxes and fees fairly provided for in the Tax Code, which must ensure the generality of the tax system and the equality of all taxpayers before the law. The Ukrainian tax system, which taxes in proportion to personal income, is found to be regressive, with those with higher incomes spending a smaller percentage on taxes and those with correspondingly lower incomes paying a larger percentage of their total income in taxes. On the other hand, a progressive scale exists for the taxation of movable and immovable property owned by citizens. This may prevent the principle of fairness from being observed in terms of taxpayers' ability to pay. The main source of funding for the national budget system should be the strengthening of the taxation of the portion of the income of the highly affluent that is considered excess income, and for this purpose; in this case, the tax rate should be applied when the total annual income exceeds the 10 living minimum. At the same time, a tax-free minimum income should be established for the social protection of low-income groups, which should be set at three times the subsistence minimum set for the taxable period. The need to introduce such a procedure stems from the fact that there are significant differences among taxpayers depending on the level of income they receive. At the same time, the rate of this tax should be progressive and the inherited amount should be exempt from taxation. According to the study, established tax incentive programs also need to be significantly modified, particularly with respect to the personal income tax deduction. Creating an efficient tax system that meets the requirements of the basic principles, especially the principle of equity, is a rather difficult task for legislation. On the one hand, it is to adapt the interests of taxpayers and the state, on the other hand, taxpayers who have different incomes and operate under different economic and social conditions
Key words principle of justice, taxation, individual, flat tax, tax exemption, Tax Code of Ukraine, principles of taxation, progressive taxation scale, regressive taxation
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