ANALYSIS OF FISCAL EFFICIENCY OF THE MOST COMMON TAX MECHANISMS

Abstract

This article continues the study of the fiscal efficiency of key taxes. The first part of the study analyzed the fiscal efficiency of corporate income tax, sales tax, and value added tax. The following publication considers following elements of the tax system: excise duties, personal income tax and simplified taxation. The study of the fiscal efficiency of excise taxes allowed us to argue that due to the influence of globalization processes, the tax burden of excise taxes at specific rates is reduced relative to the level of GDP, and specific principles of excise taxation reduce fiscal efficiency. The assumption is formulated that the ad valorem approach to excise duty calculation will contribute to the growth of fiscal efficiency. During the study of the fiscal efficiency of the personal income tax, it was found that it as a mechanism based on the taxation of the total income of citizens has the highest fiscal efficiency. The important conclusion is that the use of progressive rates this tax weakens the fiscal effect, while linear rates, on the contrary, strengthen it. The analysis of the fiscal efficiency of the simplified taxation system in Ukraine (single tax) allowed us to argue that the single tax theoretically has a high fiscal potential; in practice, low tax rates contribute to statistically insignificant volumes of its collection. In addition, the combined use by Ukrainian entrepreneurs of various options for simplified and general taxation systems reduces the fiscal efficiency of the entire tax system and exacerbates existing problems. Based on the large array of statistical data over a long period of time, trends in changes in the fiscal efficiency of the most common tax mechanisms in different countries of the world have been identified and explanations for the corresponding trends have been provided. At the end of the article, classification of tax mechanisms is provided by the degree of fiscal efficiency, prevalence in world practice, and compliance with globalization trends. This classification clearly illustrates the author's hypothesis that the main reason for the decrease in the efficiency of tax mechanisms is the subjective nature of their construction, and the globalization factor should be considered only as a secondary factor. The research was conducted using several general scientific and special methods.