Uman National University | today: 06/19/2025
| Author(s) |
Barabash L.V., , , Uman National University of Horticulture, Ukraine Куліченко Р. В., , , Щербань С. А., , , |
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| Category | Economics | ||
| year | 2025 | issue | Випуск 106 Частина 2 |
| pages | 486-495 | index UDK | 314.117.3:336.226.11:[336:330:16] | DOI | 10.32782/2415-8240-2025-106-2-486-495 (Link) |
| Abstract | The functioning of the tax system of Ukraine, in particular the personal income tax, for the prospect of post-war recovery, requires active and fundamental changes. One of the aspects of their implementation should be the consideration of non-traditional factors of influence of the sphere of behavioral finance - psychological, sociological, behavioral - on taxation. At present, domestic scientific approaches to understanding the personal income tax are limited exclusively to its fiscal role, with some assumption of its ability to play a regulatory role in the economic life of the state. However, Western scholarship considers this tax to be an effective tax instrument that works to realize the conditions of fairness in taxation. At the same time, it is based on a three-vector functioning: personal interest (of the taxpayer and the state), globalization of the taxable object and progressive tax rates. This approach makes it possible to take into account the characteristics of each payer, which is not an individual but a household, and to form a fair taxation basis and responsible tax behavior. These aspects give reason to believe that for the post-war reconstruction in Ukraine, the reform of the tax system in general and the personal income tax in particular should focus on taking into account the behavioral factors that influence the tax. Therefore, it is necessary to shift from taxing individual income to taxing household income. The basis for the above statement is a comparison of the indicators of socioeconomic development of Ukrainian households in 2021 and 2023. Among the positive changes during this period, it is worth highlighting a 10.5% increase in real household income per capita and a decrease in the unemployment rate. However, of more interest are the increase in monetary poverty, the level of purchasing power in terms of the component “not even adequate food”, the proportion of households with children, and the decrease in the average household size. In other words, we have a situation where there is a slight increase in income and an increase in the number of people dependent on the taxpayer. Therefore, in order to reorient the personal income tax from individual taxation to household taxation, it was proposed to divide the object of taxation (income) depending on the way it is received - labor (running a personal subsidiary farm, individual labor activity, family and individual trade, traditional domestic work and self-service) and non-labor (other, including family leasing, investment transactions, etc.). A progressive scale of rates based on household characteristics (presence of dependents, ownership of movable and immovable property, income per household member, etc.) should also be mandatory. | ||
| Key words | personal income tax, behavioral finance, individual income, household, household income | ||