GOALS OF EFFECTIVE INCOME TAXATION OF NATURAL PERSONS AS A FAIR REGULATOR OF THE COUNTRY'S SOCIO-ECONOMIC DEVELOPMENT

Abstract

The article is devoted to revealing the essence of calculation and payment of personal income tax in order to ensure effective regulation of personal income taxation. The main tax through which social policy is carried out in developed countries is personal income tax (PIT). The advantages of this tax include its social justice, since under certain conditions the level of taxation directly depends on the size of the taxpayer's income. In addition, progressive tax rates can be used to reduce the tax burden on low-income groups and increase the tax burden on high-income groups. In connection with changes in Ukrainian legislation, the issue of calculation and payment of personal income tax is relevant and socially significant, which should be given more attention in order to ensure effective regulation of personal income taxation. The system of taxation of natural persons of Ukraine in modern conditions is not used to its full extent as a regulator of socio-economic processes, having turned into a fiscal instrument that ensures the growth of tax revenues to the state and local budgets in conditions of political and economic instability. Progressive taxation will have the desired effect if real payment is achieved, and effective fight against spread tax evasion schemes is achieved. Socially fair distribution of income is an incentive for increasing economic activity and employment, thus reducing the need of the working population for state social support, increasing consumer demand and the level of savings, contributing to the increase of private investment in human capital, which is an unconditional factor in establishing social harmony. The main factors affecting the growth of the population's standard of living and tax revenues are: an increase in the minimum wage, an increase in the living wage per able-bodied person and, on this basis, the establishment of a tax-free minimum; ensuring a fair and optimal level of taxation; improving the efficiency of tax collection and administration, etc. Taking into account these factors, the reform of the personal income tax system will contribute to the activation of its fiscal and social-regulatory function.