The impact of a progressive personal income tax scale on reducing income inequality: comparative analysis

Resumo

Background: The tax system of the Russian Federation is guided by the principles of unity, mobility and stability, multiple forms of taxes, one-time taxation, equity and equality. However, criticisms of the existing tax systems are a common trend in many countries. They specifically concern inequitable and unstable tax laws, vague language used in them, tax illiteracy and poor tax discipline, lack of tax exemptions for certain categories of taxpayers; all these problems are frequently cited by tax system researchers in their papers. Objective: This research aims to compare the performance of countries using a progressive taxation scale in Russia and countries of Latin America. Methods: The article analyzes the impact of personal income tax rates on the level of income inequality and the effectiveness of tax systems in Russia and Latin American countries (Argentina, Uruguay, Colombia and Ecuador) in reducing social differentiation. The analysis relies on mathematical models of correlation and historical and comparative research methods. Results: The study compared the results of the effectiveness evaluation of tax systems in solving the problem of reducing income inequality, which can be used in the development of fiscal policy measures aimed at reducing social tension in society. Conclusion: The article concludes that the taxation of individuals has a significant impact on the level of income inequality, while the progressive scale of taxation of personal income can be an effective tool for reducing social differentiation in the countries under study.