Scholarly record

SELECTED ISSUES OF REAL RISING INCOMES IN RUSSIA

E. V. Ordynskaia

Abstract

Raising the standard of living of the population is one of the most pressing problems in any society. Currently, it is acquiring even greater significance for Russia due to the growing influence of a number of negative factors leading to a reduction in real incomes of the population. First of all, it should be noted that, presumably, the final tax burden on individuals, starting from January 1, 2019, increases substantially. This is due both to the direct growth of the amount of obligatory payments payable by individuals and due to factors indirectly affecting the fiscal burden on the population. In particular, the basic value added tax rate has been increased from 18% to 20%. Also, once again there was an increase in excise tax rates. These changes have already led to an increase in prices, including in respect of goods for which the VAT rate has not changed, and which are not excisable. Furthermore, the application of the legislation on taxes and fees, according to which the tax on property of individuals is calculated on the basis of the cadastral value of the property, is expanding. And in those subjects of the Russian Federation where this order began to be applied earlier, the correction factors are increased, in connection with which, the amount of tax to be paid by individuals also increases. In addition to directly increasing tax payments, other obligatory payments of the population increase. In particular, the utilization fee for cars was increased, utility fees increased, a separate garbage fee appeared. Added to everything else, a very significant issue is the source of income of the population. In recent years, there has been a tendency to reduce incomes of the population not related to wages. At the same time, the assumed insignificant wage growth in 2019 in real terms will not lead to an increase in household income, since income from other sources does not increase or decrease. Also very significant is the issue of increasing income differentiation of the population. This circumstance is aggravated by an increase in the gap in the level of fiscal load among various decile groups. For the poorest 10% of citizens, it increases, for the most affluent 10% - it is declining. Thus, the state is faced with the primary task of raising the real level of incomes of the population, developing mechanisms that promote the growth of incomes of individuals originating from sources other than wages, and also reducing the income gap of various groups of citizens. The article discusses various approaches to solving these problems, analyzes the possible consequences of potential reforms.

Publication Impact Profile

No metrics available.

PLUMX see details

DOI resolver: doi.org/10.5593/sgemsocial2019V/1.1/S03.042

Publication details

Back to publication list