Is progressive taxation “threatened” by Russians? Indirect taxes: types, payment, declaration Pros and cons of direct taxes.
The category of indirect taxes and fees includes: value added tax, various types of excise taxes, inheritance taxes, taxes on transactions with real estate and debt securities, customs and state fees... These types of fees are included in the cost of goods or services, are actually paid by buyers and then transferred to the treasury.
Concept and features
Indirect taxes are necessary to distribute the tax burden evenly between buyers and sellers. Taxable person (individual entrepreneur, entity) and the taxpayer are different entities. That is, indirect taxes perform the function of compensation, since the buyer pays the seller the amount of tax included in the cost of goods or services. The seller, in turn, is obliged to transfer the amount of the received tax to the local budget by the first day of the month following the reporting quarter.
The peculiarities of indirect taxes are their high collection rate (any violations of trade operations are detected very quickly), as well as the speed of transfer to the treasury.
The calculation of the amount of indirect taxes that must be transferred to the budget is carried out in accordance with Tax Code RF.
Types of indirect taxes
Indirect taxation includes the following types of taxes:
- Value Added Tax (VAT). This is the amount that is added to the value of the products or services sold by the enterprise. Most often, an 18% tax rate is applied, a 10% rate is set for a number of children's and food products, and exports are taxed at a zero rate. There are types of activities that are exempt from VAT.
- Excise taxes. The levy that is used in the production of goods (alcohol, tobacco products, fuel, cars) and is included in the sale price. The amount of excise taxes can reach 30-50% of the cost. There are universal excise taxes (for the entire turnover) and individual (for a specific product or group of products).
- Customs fees and duties (export, import, transit). Mandatory payments levied for goods crossing the border. The amount and list of payments is determined by the Customs Code of the CU, depends on the purpose and classification of the goods, the value of the declared batch.
- State fees. Fixed amounts that individuals or firms must pay for the provision of services government bodies(registration of an individual entrepreneur or a legal entity, notary services, fees when going to court, registration of cars, registration at the registry office, etc.).
Advantages and disadvantages
The advantages of indirect taxes are: quick replenishment of local budgets and common taxation (the consumer will in any case pay tax by purchasing a product or paying for a service).
Disadvantages: indirect tax is not proportional to the income of an individual consumer, because is already included in the price of a particular product. People with tall, and with low income must pay the same amount of tax.
At all times, the governments of various countries have actively resorted to the use of indirect taxes to cover government spending.
Indirect taxes are taxes on expenses and the one who spends more pays them, that is, they are taxes on consumption. The payer of such taxes is always the final consumer of products, works and services, buying them at a price that already includes the tax. The peculiarity of these taxes lies in the fact that they are transferred to the budget not by the one who pays, but by the one who collects taxes from buyers when selling them goods, performing work, rendering services, therefore they are called indirect.
Indirect taxes are taxes that, by their economic nature, are a surcharge to the price of goods, works (services) sold. These are value added tax, payments calculated from the proceeds from the sale of products, excise taxes, sales tax, and other taxes on proceeds.
To assess the effectiveness of the indirect tax system in world practice, various criteria are used, the most important of which are:
- - neutrality: the tax should influence as little as possible the manufacturer's command and the buyer's choice, i.e. economic distortions from the introduction of the tax should be minimal;
- - fairness: the tax must have politically acceptable distributional consequences, i.e. the tax must be accompanied by appropriate changes in other taxes or in the system of social payments;
- - price stability: the tax should not lead to inflationary processes both during the tax introduction period and in the long term;
- - profitability: the tax should provide the state with the necessary income and, as far as possible, prevent avoidance and evasion of payment;
- - administrative simplicity: the tax should strive to minimize the costs of calculating it, paying by the taxpayer, as well as collecting and controlling the payment by the tax authority.
By its economic nature indirect taxes on consumption can be classified as universal (VAT) and special (excise).
In modern tax theory, there are two main systems for levying indirect taxes:
one-stage collection:
multi-stage collection.
A one-step levy involves levying the tax once at the production or distribution stage. In this case, three subsystems are possible:
manufacturer tax:
wholesale tax;
retail sales tax.
Producer tax is levied only in the manufacturing sector. A special advantage of this collection system is the low cost of tax administration, since the number of tax payers is small, and the objects of taxation are quite impressive. But this advantage is outweighed by a number of disadvantages.
Firstly, a number of manufacturing enterprises... In the future, the inclusion of all these enterprises in the taxation scheme leads to the fact that the tax becomes a "pyramid", and in order to minimize tax pressure, enterprises involved in the same production chain have an incentive to merge. The consequences of such a system are less efficient production and taxation.
Secondly, when using this system of tax collection, its neutrality is not ensured, i.e. the tax burden is unevenly distributed. In particular, the share of tax in the price of identical goods can vary significantly depending on the number of enterprises involved in the production chain.
Bulk tax is levied at the pre-retail stage. In comparison with the tax from the manufacturer, here not only the disadvantages noted earlier remain, but the number of taxpayers also increases, which creates additional difficulties in administering the tax.
Retail sales tax applies not only to retailers, but also to manufacturers and wholesalers, subject to the delivery of products to direct consumers. The base of taxation is the retail price, which excludes discrimination between different distribution channels, but the circle of taxpayers is sharply expanding, which clutters and, accordingly, complicates the procedure for administering (collecting) tax.
Unlike single-stage collection, multi-stage collection covers several stages of the production and distribution process and can be subdivided into:
cumulative multi-stage collection;
Non-cumulative multi-stage collection.
In a cumulative cascade system, tax is levied at all stages of production and distribution. The main disadvantages of such a system are:
significant cascading effect, i.e. the tax burden becomes the greater, the longer the distance to the consumer. Moreover, the scale of such a "pyramid" is much larger compared to one-stage collection systems, since the tax covers all stages of the movement of products from producer to consumer;
distortion of competition, because the tax burden also increases with a longer production or distribution chain.
As a consequence, such taxes are rightly considered the most ineffective and non-market taxes, since they are levied without regard to performance. economic activity, have a credit mechanism and therefore allow double taxation (in terms of production costs). This reduces the economic effect of the social division of labor and specialization. Moreover, in order to minimize the tax burden, there is an interest in creating vertically integrated associations covering almost all stages of production, and this is a movement in the opposite direction from the social division of labor and specialization to “subsistence farming”.
It should be noted that these disadvantages become dominant when high tax rates are used.
Paradoxically, cumulative systems, with all their shortcomings, have become the most widespread and have been preserved for a very long time and remain in individual countries to this day as the main systems for collecting indirect taxes. Most likely, this is due to one, but very important advantage of them. It consists in providing a relatively high income to the state budget at a sufficiently low tax rate. But when the tax rate goes beyond "low enough", the tax becomes a brake on economic development and negates these benefits.
Non-cumulative multistage levies are represented by value added tax, which is an important revenue source for the budget in most countries of the world. It should be noted that the use of this system makes it possible to realize not only the advantage of the cumulative system, but also to avoid almost all of its disadvantages.
The economic significance of this tax is explained by the fact that in countries with a developed market system, VAT helps to strengthen its equilibrium. This is achieved due to the fact that, along with the fiscal one, it plays a regulatory and stimulating role.
The main advantage of VAT is that it is capable of exerting a regulatory effect in curbing the crisis of overproduction and in accelerating the expulsion of weak producers from the market. It acts as a demand limiter in the case of a high degree of market saturation, when the consumer reacts to an increase in the price of a product by reducing the volume of consumption, and a producer to a decrease in the price by expanding production.
VAT is an indirect multi-stage tax, as it is included in the price of the product and is ultimately paid by the end consumer. The object is the added value, the subjects are legal entities, regardless of industry, form of ownership.
The main advantages of VAT are:
use of a single tax rate for all industries or several unified rates for individual industries, preferential rates for individual industries;
ensuring the real level of taxation for all industries and types of economic activity, including the service sector;
simplicity and reliability of the tax collection procedure for the payer and tax authorities;
a stable source of increasing government revenues;
the possibility of harmonization with taxation in neighboring states.
VAT is also effective as a means of regulation foreign economic activity: to stimulate the building of export potential, exporting firms are refunded the entire amount of tax paid at the previous stages.
Of the negative aspects of VAT, it is necessary to highlight its regressive nature for the end consumer and the fact that its introduction involves the use of a new calculation of production costs. Moreover, its application leads to an increase in administrative costs due to the expansion of the circle of taxpayers.
Assessment of the place and role of VAT in the economy of Belarus is ambiguous. Practitioners believe that this tax provides the best budgetary needs, and analysts criticize it for being excessively fiscal, the tax base has not been worked out, and high rates.
The Republic of Belarus also uses one-stage systems for levying indirect taxes. It is on taxes from the manufacturer (excise) and from the retailer (sales taxes, taxes on certain types of services).
Benefits of Indirect Taxes:
- 1. Indirect taxes are characterized by ease of payment and regularity of budget receipts. Retention and control of indirect taxes does not require expansion - the tax apparatus.
- 2. Since indirect taxes increase state revenues due to population growth or its well-being, they are more beneficial for countries that are progressing economically.
- 3. Taxes affect aggregate consumption by increasing the cost of a product. At the same time, the restraining influence of the state on the consumption of products harmful to the health of the nation and morality is especially important.
- 4. Direct taxes, from the point of view of the man in the street, are paid to the state free of charge, the indirect tax is veiled in the price of the goods, and if the payer realizes that the price is increased by the tax, he still receives the necessary product in return.
- 5. For the end consumer, indirect taxes are convenient because they are determined by the amount of consumption, the convenience of payment in time, the proximity to the place of deposit, the absence of a compulsory nature, the absence of loss of time for the contribution, do not require the accumulation of certain amounts.
The disadvantages of indirect taxes include the following:
- 1. In fact, the payment of the tax is carried out by the head of the family, and is formed by all family members. Direct taxes impose the average tax capacity, while indirect taxes implement the principle of self-taxation, since with the help of indirect taxes the payer himself regulates the individual tax capacity.
- 2. Since the right to levy indirect taxes is almost never disputed, the object of political strife is usually income tax or income tax.
- 3. Indirect taxes fall on individuals disproportionately to their capital or income, overburdening low-paid segments of the population.
- 4. Indirect taxes in developed market relations limit the size of the profit of entrepreneurship, since in a competitive environment it is not always possible to increase the price by the amount of indirect taxes, especially in cases of an increase in the rates of these taxes.
Direct tax is usually called one that is directly paid by the person whom the state intends to impose.
Direct taxes - taxes, which include mandatory payments, the source of payment of which is profit (income). The list of direct taxes includes income and income tax, income tax, real estate tax, single tax from individual entrepreneurs and other individuals, gambling business tax, local taxes calculated from profits.
Finding the optimal combination of direct and indirect taxation is one of the main strategic problems in tax policy... It is known that in countries with developed market economy the tax system gravitates towards direct taxes, which directly implement not only the fiscal, but also the distributive function of taxation.
Historically, direct taxes appeared before indirect taxes. Direct taxation is the simplest and most ancient form of tax collection. The original types of direct taxes were tithe, capitation or head tax.
It should be noted that historically direct taxes can be divided into three main types. The object of the first type of taxes is material capital, while certain types of income are subject to taxation (land tax, property tax, inheritance and gift tax). The object of the second type of taxes is the independent manifestation of personal capital, such as personal earnings, housing, profession (income tax, tax on property of citizens, dividends). The object of taxes of the third type is the aggregate activity of material, monetary and personal capital in production (income tax, trade tax). As you can see, direct taxes are based on either person or income, regardless of sources, or property, regardless of income.
Adherents of direct taxation consider it the most progressive form, since, firstly, income and total financial position the payer, his property, and secondly, there are certain difficulties in transferring direct taxes to other persons or in evading their payment.
Currently, direct taxes form the basis of tax systems in developed countries, as they have several advantages over other types of taxes. The main advantages of direct taxation are as follows:
- 1. Economic - direct taxes make it possible to establish a direct relationship between the payer's income and his payments to the budget.
- 2. Regulatory - direct taxation is an important financial regulatory lever economic processes(investment, capital accumulation, aggregate consumption, business activity, etc.).
- 3. Social - direct taxes contribute to the distribution of the tax burden in such a way that large tax expenses have those members of society who have higher incomes. This principle of taxation is considered the fairest.
However, the disadvantages of direct taxes should also be noted:
- 1. Organizational - a direct form of taxation requires a complex mechanism for levying taxes, as it is associated with a rather complex methodology of maintaining accounting and reporting.
- 2. Control - control over the receipt of direct taxes requires a significant expansion of the tax apparatus and development modern methods accounting and control of payers.
- 3. Police - direct taxes are associated with the possibility of tax evasion due to imperfect financial control and the presence of commercial secrets.
- 4. Budgetary - direct taxation requires a certain development of market relations, since only in a real market can the real market price be formed and, therefore, real income (profit), however, losses can also occur with the same probability. Therefore, direct taxes cannot be a stable source of budget revenues.
In addition to indirect taxes, direct taxes and fees make a significant contribution to the formation of budget revenues, the list of which includes income and income tax, income tax, real estate tax, a single tax on individual entrepreneurs and other individuals, local taxes calculated from profit.
Good day, dear friends! Vlad Novikov is with you again, and today we will talk about direct and indirect taxes. I think this information will be very useful to those who are engaged in commercial activities or are just planning to start their own business.
In this article, you will learn:
- basic concepts related to taxation;
- principles of tax classification;
- what is the difference between direct and indirect taxes (pros and cons);
- you will also learn about ideal taxation system!
But first, let's take a quick look at what direct and indirect taxes are, in order to have a certain basis from which to build on in further judgments.
If we talk in simple words then direct taxes- this is a deduction in favor of the state, which the taxpayer pays out of his own pocket.
Hence, indirect taxes- these are payments, the financial burden of which is transferred from the taxpayer to his clients by including such taxes in the cost of services and / or goods. A simple example is the excise tax on tobacco products. The money is taken from the buyer's pocket, but the payment is the state budget does the seller.
The methodology by which we will study taxes, direct and indirect, borrowed from the first of the kind of philosophers - the great Socrates.
Socrates is an Ionian (ancient Greek) sage who lived in Athens from 469 BC. That is, to 399 BC. e., which laid the foundation for the entire modern scientific system of knowledge. Replacing the mystical approach of studying everything and everything with rationalism.
According to the concept of cognition of the greatest of sages, the process of studying and transmitting information is divided into several stages:
First, you need to decide whether the participants in the process speak the same language. This means whether the definitions and concepts that people operate with are identical when they talk about the same thing.
Secondly, you need to divide the object (s) under study into its components and consider its advantages and disadvantages in order to understand what it is.
Thirdly, it is necessary to systematize the knowledge studied and draw conclusions in order to understand the degree of utility of the object, if any.
What - what do you say it is called? (basic concepts).
Let's get down to the first stage - we will give definitions of the basic concepts that are used in reasoning about taxes, to make sure that we are talking about the same thing.
Tax(duty) is a free payment levied in mandatory by the state from a private or legal entity. Ideally, this is a deduction to the general “cashier”, from which money is allocated for the creation and development of common goods.
Tax system (NS) - Legally regulated system of interaction between the state and the taxpayer, including: rules for tax collection; rules for their distribution; as well as the benefits and sanctions associated with this process.
Object of taxation (ON) - this is a certain object that has physical, quantitative or price characteristics, which necessitate the payment of tax by a private or legal entity, if they possess (use) this object.
Taxpayer or a subject of taxation is a private or legal entity that is obliged to pay taxes under the current National Assembly.
Classification- dividing an object or objects into component parts and / or combining them within one category. For example: tree - apple or oak, money - cash and electronic, taxes - direct and indirect.
Tax rate
- the size or amount of deductions to the budget.
To consolidate the material, let's put what we have learned into practice.
With regard to investment tax, this means trading in securities or material resources (oil, gold, bananas) on stock exchanges... One of these types of trade was written in the article. Read it at your leisure if you are interested in this question.
Group number 2. These are incomes from future (estimated) income. These include all payments where the taxable object is the potential income that a particular taxpayer can receive through the use of certain assets. In other words, it is a tax on property that can be profitable. It should be noted that tax collection is mandatory, even in cases where the taxpayer has not received any income (profit).
These taxes include:
— land tax;
- payment for the use of minerals (minerals) resources;
- transport tax (road or environmental tax);
- real estate tax.
If there are a few more nuances, but we will analyze them when we consider the question of how direct taxes differ from indirect ones.
Indirect taxes- these are compulsory payments that the taxpayer pays, but in this case the financial burden of these payments is shifted to a third party (buyer, client), who pays these payments to the taxpayer, and he, in turn, gives them to the state.
For example, a seller (subject of taxation) sells to his client a liter of milk (taxable object), the price of which already includes VAT (additional value tax). Thus, the buyer pays VAT, but the seller makes the payment to the state budget for this tax.
Indirect taxes, like direct taxes, can be grouped according to some criteria:
Group # 1. Universal is a mandatory addition to the cost for all services and goods (exceptions are possible). The most striking and well-known example of such a tax is the previously considered VAT. He is the most controversial and controversial.
Group number 2. Individual taxes are indirect taxes that apply only to certain services and goods. An example of such fees:
- tax on the purchase and sale of real estate;
- excise taxes;
- tax levied on the purchase of jewelry (luxury tax).
Group No. 3... Fiscal payments are fees charged by the government when issuing certain government permits. For example:
- payments for registration of certain documentation (by the state);
- licensing;
- payment for obtaining permits (construction, mining / use of minerals).
Group No. 4... Customs duties are, in fact, the payment for crossing the state (sometimes administrative) border as an object of taxation. Also, this tax is also called "customs clearance". Examples of customs tax are mandatory payments when buying abroad and then importing cars, household appliances, electronics, meat, etc. into the territory of the Russian Federation.
How will we divide the money? The ratio of direct and indirect taxes in the budget of the Russian Federation.
I will not torment for a long time and I will say right away - in Russia the ratio of direct and indirect taxes is somewhere around 30% to 70% in favor of indirect payments. The situation is similar in Latin American countries and in the western part of the EU. Good or bad ... let's think about it.
But first, let's look at how direct and indirect taxes are distributed in the world. According to this criterion, all states can be divided into 4 conditional groups:
First group- this is so called "Anglo-Saxons": USA, Australia, UK, Canada, etc. Their model assumes the dominance of direct taxes over indirect ones (≃ 70% to 30%). At the same time, as a rule, in these countries payments from individuals are greater than tax revenues from legal entities.
Second group- this is Eurocontinental model NS: Germany, Austria, Belgium and France. In these countries, payments from indirect taxes are several times higher than payments from direct taxes. This is largely due to the strong social orientation of these states, as a result of which many payments are passed on to a third party. As with the same health or social insurance.
Third group - Hispanic model: Pain, Chile, Peru and more. Under this NA, states impose traditional indirect taxes on taxpayers. Because it is believed that they are able to offset the high inflation of national currencies.
The fourth group is a mixed model. Frankly speaking, this is not even a model, but a simple and most likely random combination of features of the three previous models. What is typical for developing or unstable (new) states. Since they do not have a strategy for the development of the economy, and leaders often change. Therefore, there is simply no one there to balance different types of taxes, direct and indirect, within the framework of any effective model for the development of the tax system.
With regard to Russia, as it was said earlier, the ratio of direct and indirect taxes here is a combination of two models. An excessive social burden has been taken from one (the Euro-continental model) - in the Russian Federation there is a huge number of civil servants (40 million) and a large number of pensioners. And at the same time, the burden of the tax burden is shifted to the final consumers of goods and services through indirect payments (Latin American model).
As a consequence, the Russian economy tends to a simple formula:
high prices + low salaries = economic crisis and social tensions.
What comes of this is described in the books of P.A. Sorokin. However, things are not so bad, as in the last few years there has been a tendency towards an increase in the share of direct taxes.
The verdict for Russia: if you want to make money, become an entrepreneur, not an end consumer. In order to shift taxes to a third party.
True, two questions may arise here:
1. What kind of business to do?
2. Where to get money for start-up capital?
On the first question, this is an individual matter. Choose what you are good at and what you enjoy.
On the second question, I already gave an answer in the article
Yes, it is difficult and requires an entrepreneurial streak, but, nevertheless, it is better than the average salary. With which you pay direct taxes for yourself and indirect taxes for entrepreneurs!
Types of taxes: direct and indirect. Which is better and why?
It's time to compare direct and indirect taxes in order to understand which one is better.
First, let's look at the main advantages of direct taxes:
- ease of counting;
- ease of collection (procedural);
- it is easy to determine their impact on the economy.
Now the cons:
- they are very often not paid as in the framework current legislation, and bypassing it;
- Difficulties with linking to profit (controversial);
- ineffective in a crisis or stagnation of the economy.
Concerning the controversial point. The duality is that direct income is paid regardless of whether there is a profit in the taxpayer or not, which seems to be unfair. But on the other hand, it stimulates economic activity. And this is very good!
Let's move on to indirect taxes. Their advantages are as follows:
- help to cover colossal government costs;
- stimulate / save business;
- a small number of non-payers (for indirect taxes).
Well, and, accordingly, consider the disadvantages of this type of tax deductions:
- the procedural complexity of the collection (if there are many counterparties in the chain between the consumer and the state);
- the tax burden is unevenly distributed (the poor pay almost everything, the rich pay almost nothing);
- highly dependent on customer demand.
From my point of view, direct and indirect taxes are in many ways inversely proportional to each other. Where one is good, there is another bad and vice versa. For example, direct duties are more or less evenly distributed between the poor and the rich, as a percentage of income and / or property is paid. But at the same time, they become a burden if there is no economic development.
At the same time, indirect taxes stimulate the development of the economy in bad or crisis times. But this is not done at the expense of big capital, but at the expense of the simple and, as a rule, the poor population.
Which one is better, I am at a loss to say. And I don’t want to choose, because I know a different model of the tax system, which has absorbed all the advantages of both types, getting rid of their shortcomings.
An ideal tax system!
What I am was written earlier in the article about mine. Therefore, I will not repeat myself. Let me just say that my point of view is the point of view of an active entrepreneur with a successful practice of starting and running his own business.
Therefore, I know what I'm talking about, unlike the "expert theorists".
And I'm talking about “ Inflation tax". Its concept is extremely simple - instead of printing money, giving it to people, and then collecting it in the state budget, you can simply print money directly to finance the state budget - without intermediaries in the form of a taxpayer, the tax system and other fiscal services.
What will come of this? The fact that, roughly speaking, the inflation of the ruble will become a tax, which will “eat up” equally part of the financial resources of all holders of ruble money and those who have some resources (property), whose value is denominated in rubles.
At the same time, this tax completely equalizes the poor and the rich before the tax system, since it takes away from everyone a certain percentage of their wealth. For example, if you have 100 million rubles, and the inflation tax is 10%, then you will lose exactly this 10% - 10 million rubles. And at the same time, if you have 100 rubles, then you will lose the same 10% - 10 rubles. The perfect equalizer!
Pros of an inflation tax:
1. Simplicity collecting. Tax office and everything connected with it becomes unnecessary. Since there is no need to collect taxes!
2. Disappearance of tax offenses! How to break what is not?
3. Inflation fee will absorb taxes, direct and indirect in terms of their merits. This means that it will stimulate economic development and at the same time levels rich and poor.
Of course, this tax also has disadvantages, more precisely two disadvantages:
- It can be circumvented by transferring money to another currency. But this is offset by the introduction of a commission on transactions in foreign currencies.
- Reflection of the rich. This tax is unprofitable for them, because they all possible ways will oppose its introduction. Actually, therefore, it is still not used in any country, although this concept was developed a long time ago.
Apology (not Socrates)
So, following the covenant of Socrates, we studied taxes, direct and indirect, defining the basic terms related to the tax system, and grouping its components into separate groups. All this made it possible to understand how matters stand with this issue in Russia, and where it needs to move further. Therefore, we have fully understood this issue.
17. The country has a progressive taxation system. Income up to 20 thousand den. units taxed at 15%. Income from 20 thousand to 30 thousand den. units taxed at 25%. Income in the amount of more than 30 thousand. Den. units taxed at 35%. Citizen Ivanov received an income of 36 thousand den. units and paid a tax of 6.5 thousand den. units How much money did the state receive less?
18. MRS= 0.5. Determine what the multiplier of government spending is equal to and tax multiplier? Why is the tax multiplier less than the multiplier of government spending?
19. The entrepreneur employs the labor of 10 workers and pays each 20,000 thousand den. units per month. Tax rates: uniform social - 26%, income tax - 13%. How much does the state receive less in taxes if half of the workers are not registered?
20. The dynamics between changes in consumption and income is presented in table. 10.6. According to available data:
a) draw a consumption curve and determine what is equal to
the angle of its inclination;
b) what is the value MPS;
c) what is the cost multiplier?
d) what is the tax multiplier?
d) let introduced a tax, not dependent on the level of income, in the amount of 10 million den. units How will the cost multiplier change? Tax multiplier? How will this affect economic situation in the country?
Table 10.6
21. Why is it believed that the state budget is a visual confirmation of the theory of public choice? Comment on the expression: "An adopted budget is always a compromise."
22. Select, in order of importance, the four main sources of state budget revenues in developed countries:
a) income from state property;
b) inheritance tax;
c) net proceeds from raising funds from the free capital market;
d) value added tax;
e) customs duties;
f) property tax;
g) social contributions;
h) tax on transactions with securities;
i) corporate income tax;
j) personal income tax.
23. Name, in order of importance, the three main items of expenditure of the state budget:
a) administrative and management expenses;
b) payments on the public debt;
c) loans and assistance to foreign countries;
d) spending on social services (education, pensions, etc.);
e) defense of the country;
g) expenses for the protection and improvement of the environment.
24. The country has a proportional taxation system. The income tax rate is 15%. The real income of the population is 1300 den. units Government expenditures 190 million den. units According to experts, the income of the population in full employment will amount to 2000 den. units Structural state of the budget:
a) surplus of 5 million den. units;
b) a deficit of 5 million den. units;
c) surplus of 110 million den. units;
d) a surplus of 700 million den. units
25. Analyze the following sources of deficit financing federal budget:
a) budget loans received from budgets of other levels of the budget system;
b) loans from international financial organizations provided in foreign currency;
d) loans received by the government from credit institutions denominated in rubles;
e) government loans carried out in foreign currency by issuing securities on behalf of the Russian Federation;
f) government loans carried out by issuing securities on behalf of the Russian Federation;
g) sale of a part of state property.
Determine which of the listed sources of covering the deficit are internal and which are external.
26. The government received a loan in the amount of 2 million den. units at 10% per annum for 10 years. These funds are supposed to be used to finance projects that will annually bring GDP growth of 0.6 million den. units for 10 years. Public debt increased by:
a) 1.4 million den. units;
b) 1.8 million den. units;
c) 2 million den. units;
d) 4 million den. units
27. Comment on the statement: “Borrowing by the state in the foreign market always leads to the loss of independent economic policy and submission to the interests of creditors. " Give examples to support this statement, based on the economic history of modern Russia.
28. Based on the data given in table. 10.7, calculate the GDP growth rate and public debt and draw conclusions about the prospects for the repayment of public debt?
Table 10.7
19. The government received a loan in the amount of 2 million den. units at 10% per annum. These funds will be used to finance the project, which will generate annual GDP growth of 0.6 million den. units In how many years the country will pay off the debt.
20. The economy is described by the following data: the real interest rate is 3%, the growth rate of real GNP is 7%, the debt / GNP ratio is 50%, and the primary budget deficit is 5% of the GNP. Determine if the debt / GNP ratio will increase or decrease?
Tests
1. The budgetary system of the Russian Federation is:
a) single-level;
b) two-level;
c) three-level;
d) four-level.
2. The main objectives of fiscal policy are:
a) smoothing out fluctuations in the economic cycle;
b) stabilization of rates economic growth;
c) ensuring a high level of employment with low inflation;
d) all of the above.
3. What tax is the source of the formation of state off-budget social funds:
a) personal income tax;
b) tax on property of organizations;
c) single social tax;
d) corporate income tax.
4. In the opinion of monetarists, the fiscal policy of the state may turn out to be ineffective, since:
a) investment costs are not sensitive to changes in interest rates;
b) by borrowing money from the population to finance the budget surplus, the state promotes an increase in the interest rate and provokes a crowding-out effect;
c) borrowing money from the population for financing budget deficit, the state increases the interest rate and provokes a crowding-out effect;
d) the effect of displacement as a result of stimulating fiscal policy small because the investment demand curve is relatively steep.
5. If the government changes the size of tax rates and government spending, then the regulation of the economy is carried out by methods:
a) automatic fiscal policy;
b) policies of built-in stabilizers;
c) discretionary fiscal policy;
d) monetary policy.
6. Discretionary fiscal policy involves:
a) automatic self-regulation;
b) action of the state at its own discretion;
c) expansion money supply;
d) narrowing of the money supply.
7. Built-in stabilizers operate within:
a) discretionary fiscal policy;
b) automatic fiscal policy;
c) credit expansion;
d) credit restriction.
8. Automatic (built-in) stabilizers include:
a) state budget expenditures for the military-industrial complex;
b) progressive taxation;
c) indirect taxes;
d) expenditures of the state budget for health care and education.
9. To overcome the economic downturn, the state conducts:
a) stimulating automatic fiscal policy;
b) stimulating discretionary fiscal policy;
c) restraining discretionary fiscal policy;
d) restraining automatic fiscal policy.
10. Deterrent fiscal policy suggests:
a) growth in government spending;
b) tax cuts;
c) a simultaneous increase in taxes and government spending;
d) increasing taxes and reducing government spending.
11. Towards an incentive fiscal policy refers to:
a) increase in taxes;
b) an increase in government spending while reducing taxes;
c) reducing government spending;
d) reduction in taxes and government spending.
12. The instrument of a restraining fiscal policy is:
a) an increase in the rate of required reserves;
b) increase in tax rates;
c) an increase in transfers;
d) new loans.
13. Multiplier of government spending:
a) equal to the investment multiplier;
b) is equal to the tax multiplier;
c) equal to the multiplier of transfers;
d) is not associated with these values.
14. If marginal propensity to consumption is 0.75, then the tax multiplier is:
a) is equal to -2;
b) is equal to -3;
v) is equal to -4;
G) is equal to -5.
15. If the marginal propensity to consume is 0.75, then the government spending multiplier is:
a) is equal to 2;
b) is equal to 3;
v) is equal to 4;
G) is equal to 5.
16. Direct tax:
a) levied from the direct owner of the taxable object;
b) paid by the final consumer of the taxable goods, and the sellers act as agents for the transfer of the funds received to the state;
17. Indirect tax:
a) is paid by the final consumer of the taxable product, and the sellers act as agents for the transfer of the funds received to the state;
b) levied from the direct owner of the taxable object;
c) it is a tax whose rate increases as the object of the tax grows;
d) it is a tax at which the rate remains unchanged, regardless of the value of the taxable object.
18. Income tax is:
a) indirect tax;
b) direct tax;
c) proportional tax;
d) progressive tax.
19. Income tax is:
a) direct tax;
b) indirect tax;
c) proportional tax;
d) progressive tax.
20. Value added tax is:
a) direct tax;
b) progressive tax;
c) indirect tax;
d) regressive tax.
21. Excise taxes include:
a) inheritance tax;
b) value added tax;
c) property tax;
d) tax charged on tobacco.
22. Direct tax is:
a) customs duty;
b) inheritance tax;
c) sales tax;
23. Indirect tax is:
a) sales tax;
b) income tax;
c) income tax;
d) gift tax.
24. Direct taxes are focused on:
b) transactions;
c) personal performance;
d) trade.
25. Indirect taxes are focused on:
c) personal performance;
d) collective performance.
26. Excise tax is paid by:
a) consumers of this product;
b) all taxpayers;
c) persons with a high level of income;
d) foreign citizens whose firms operate in the territory of a given country.
27. Direct taxes include:
a) excise tax;
b) tax on income from property;
c) customs duty;
d) value added tax.
28. With a progressive taxation system, the degree of inequality in society after taxes are levied:
a) increases;
b) does not change;
c) changes if the share of people with a high level of income is large enough;
d) decreases.
29. Under a proportional taxation system, the degree of inequality in society after taxes are levied:
a) does not change;
b) decreases;
c) increases;
30. Under a regressive taxation system, the degree of inequality in society after taxes are levied:
a) does not change;
b) increases;
c) decreases;
d) changes if the share of people with a high level of income is large enough.
31. Increase in tax rates:
a) makes the entrepreneur work harder to pay taxes;
b) promotes GDP growth;
c) reduces business activity;
d) promotes constant growth tax revenues to the state budget.
32. If the tax rate has increased, then:
a) revenues to the state budget will necessarily increase;
b) revenues to the state budget will automatically decrease with an increase in the rate, since this leads to a decrease in profits;
c) budget revenues do not depend on the size of the tax rate;
d) budget revenues first increase and then decrease, as it begins to narrow the tax base from which the tax is charged.
33. The government of the country, by reducing taxes, achieves the goal:
a) to prevent "overheating" of the economy;
b) slow down the rate of inflation;
c) reduce the unemployment rate;
d) slow down fast growth interest rates.
34. The Laffer curve characterizes:
a) inequality in the distribution of income in the country;
b) the relationship between the unemployment rate and the volume of GNP;
c) the relationship between unemployment and inflation;
d) the relationship between the size of the tax rate and the amount of tax revenues to the state budget.
35. If business taxes rise, then:
a) aggregate demand is decreasing, and aggregate supply does not change;
b) the aggregate supply decreases, but the aggregate demand does not change;
c) both aggregate supply and aggregate demand are decreasing;
d) aggregate supply and aggregate demand are growing.
36. The state budget is:
a) all amounts received by the treasury;
b) list government revenues;
c) the financial plan of the state, comparing the expected income and expenses;
d) the budgets of the subjects of the Federation.
37. The third level of the budgetary system of the Russian Federation is:
a) the budgets of the constituent entities of the Russian Federation;
b) enterprise budgets;
v) local budgets;
d) budgets of off-budget funds.
38. Budgetary funds provided on the basis of equity financing of targeted expenditures are called:
a) subsidies;
b) subventions;
c) reparations;
d) subsidies.
39. State budget expenditures include:
a) employers' contributions to social insurance;
b) export duties;
c) interest on state external debt;
d) profit of state-owned enterprises.
40. Capital expenditures of the budget do not imply:
a) government support budgets of other levels;
b) appropriations for maintenance budgetary institutions;
c) loans to foreign countries;
d) transfers to the population.
41. Cyclically balanced budget:
a) will intensify cyclical fluctuations in the economy;
b) it is characterized by equality between the sum of all surpluses formed during the period of recovery and the sum of all deficits arising during a recession;
c) ensures equality budget revenues and costs in each phase of the economic cycle;
d) is characterized by the equality between the sum of all deficits formed during the period of recovery and the sum of all surpluses that occur during a recession.
42. The budget deficit, which is the difference between the real and the structural deficit, is called:
a) active;
b) passive;
c) actual;
d) cyclic.
8. If full employment is observed with a budget deficit, then:
a) structural deficit;
b) cyclical deficit;
c) the actual deficit;
d) real deficit.
43. Internal sources of financing the budget deficit include:
a) loans from international financial organizations provided in foreign currency;
b) loans received from credit institutions in the currency of the Russian Federation;
c) loans from foreign governments, banks and firms, provided in foreign currency;
d) government loans carried out in foreign currency by issuing securities on behalf of the Russian Federation.
44. External sources of financing the budget deficit include:
a) government loans, carried out by issuing government securities;
b) government loans carried out in foreign currency by issuing government securities;
c) loans received by the government from credit institutions, denominated in rubles;
d) balances of state reserves and reserves.
45. Financing the budget deficit in an inflationary economy is preferable through:
a) emissions;
b) external loans;
c) internal loans;
d) issue of securities.
46. Public debt is:
a) the total amount of budget deficits accumulated for all years;
b) the amount of external loans;
c) the amount of internal loans;
d) government debt to the population.
47. The amount of public debt is calculated as:
a) the balance of the state budget in the current year;
b) the sum of the total debt of all citizens of the country;
c) the amount of debt of the business sector to the rest of the world;
d) the amount of external and internal obligations outstanding by the state.
48. Debt burden is:
a) the amount of the budget deficit;
b) the amount of public debt;
c) the ratio of public debt to GDP;
d) the ratio of the budget deficit to GDP.
49. The change in the terms of the public debt, related to its terms, is called:
a) conversion;
b) consolidation;
c) by consensus;
d) conversion.
The state budget is a set of means by which the state apparatus of the country is formed from taxes, which can be both direct (imposed on the citizens of the country) and indirect (imposed on the citizens of the country through an intermediary - an entrepreneur).
The need to divide taxes into two categories: direct and indirect is associated with their classification according to the method of collection. The existing taxation system in our country combines the possibilities of using both direct and indirect options. In this case, direct taxes are levied directly from the income (property) received. They are determined by the percentage and the basis for calculation. Indirect taxes are imposed on the goods and services sold. Anyone who sells goods and services (entrepreneur) includes them in the price of products, and then, having received income from the sale, returns this share to the state in the form of this fee.
It turns out that the studied category of taxes is paid at the expense of the buyer of the product, and the seller is only an intermediary between the end user and the state. However, the demand for the timeliness and volume of indirect fees comes from the manufacturer. These taxes are related specifically to the consumption of products and services.
Concept
Indirect taxes are such for the reason that they are not levied on the manufacturer, but on the final buyer of the product. They allow you to significantly replenish the state budget. They are actively used in relation to products of mass demand.
General properties
The fact that VAT and excise taxes belong to one category is determined by the following points:
- The ability to influence the growth or contraction of the production of goods.
- It is a factor in the regulation of prices for goods.
- Affects the income of the population.
- Generation of budget revenues.
Differences between direct and indirect
The table below summarizes the differences between the two tax categories.
VAT: characteristics
The main types of indirect taxes are:
- value added tax (VAT);
- excise taxes.
VAT in last years provides about 30-35% of the total budget income in our country. VAT refers to the federal level. main feature lies in the fact that this tax is not levied on the entire cost of production, but only its added part, which arises at different stages of production.
Most of the goods in our country are subject to VAT. However, the following types of products and services do not belong to this category:
- medical supplies;
- nursing services;
- services for preschool education of children;
- food in school and medical canteens;
- archiving services;
- transportation of passengers in the city (settlement);
- funeral services, etc.
In more detail, this list is presented in paragraph 3 of Art. 149 of the Tax Code of the Russian Federation.
If a company works with products (services) that are both taxed and not taxed, then the accounting is kept separately. Also, separate accounting is applicable when different rates VAT. Possible rates: 0, 10 and 18%.
The 0% rate is considered preferential and is applicable for various export operations, for international transport, in the space industry, in the transportation of gas and oil, etc.
The 10% rate is applicable for the following product groups:
- a number of products (sugar, salt, bread, flour, etc.);
- childen's goods;
- medical purposes;
- press and periodicals;
- transportation by plane;
- purchase of livestock for breeding, etc.
The rest of the goods not included in these lists are sold at a rate of 18%. If the company has received income for the quarter below 2,000,000 rubles, then it has the right to apply to the authorities for exemption from VAT.
VAT has its advantages and disadvantages in the process of use.
The main advantages of VAT:
- the possibility of deducting input VAT;
- a developed network of partnerships with those who are a major VAT payer in the country.
Main disadvantages:
- significant amounts are paid by enterprises;
- frequent inspections by the tax authorities.
Excise tax
Indirect taxes include excise tax.
Initially, this tax was supposed to be levied only on goods, the demand for which negatively affects the health of buyers (for example, alcoholic beverages and tobacco). With the help of excise taxes, the state aims to reduce the consumption of these goods. Separate category are luxury goods that are also subject to excise taxes.
Today, the list of goods subject to excise taxes is impressive:
- alcoholic beverages;
- tobacco products;
- Cars;
- motorcycles;
- gasoline and diesel;
- engine oils;
- kerosene for aircraft in the form of fuel;
- natural gas;
- fuel for stoves.
Tax rates for excise taxes are specified in Art. 193 of the Tax Code of the Russian Federation. Today, such rates have been determined until 2020. Excise taxes are calculated according to the tax base and rate for each product. The total amount is calculated based on the results of the month.
Among the main advantages of excise taxation are:
- the moment the tax is paid coincides with the moment the goods are sold;
- evading payment is difficult enough;
- the amount of tax is transferred even if there is no profit.
Methodology for calculating VAT
Indirect taxes with examples of calculations (VAT) are presented below.
VAT = NB * C / 100,
where NB is the tax base, i.e.
С - rate,%.
The calculation of VAT also means that you need to highlight the tax, which is included in the total amount. We use the formulas:
VAT = С / 1.18 * 0.18 - at a rate of 18%,
VAT = С / 1.1 * 0.1 - at a rate of 10%.
where C is the amount that includes VAT, i.e. p.
An example of calculating VAT is presented below.
Let's take the company "Orion" LLC. She sells a batch of products in the amount of 50 thousand units at a price of 100 rubles. The rate used is 18%. Tax is not included in the price. Calculation method:
- let's determine the cost of the batch, excluding VAT:
100 * 50,000 = 5,000,000 rubles;
- define VAT:
5,000,000 * 18/100 = 900,000 rubles;
- we determine the amount with VAT:
5,000,000 + 900,000 = 5,900,000 rubles;
- another option for calculating the total amount:
5,000,000 * 1.18 = 5,900,000 rubles.
In the documents, the accountant indicates the values:
- cost without VAT - 5,000,000 rubles;
- VAT 18% - 900,000 rubles;
- cost with VAT - 5,900,000 rubles.
Example of calculating excise taxes
There are several formulas for calculating this tax:
- applying fixed rates:
where B is the volume of proceeds from excisable goods, units.
CA - excise rate, rubles.
- application of interest rates (ad valorem):
A = St * CAk / 100%,
where St is the cost excisable goods realized, t. p.;
Sak - the rate of excise duty in% of the value of the goods;
- combined rates:
A = B * CA + St * Sac / 100%.
Income tax and indirect taxes
Direct taxes refer to property and income that are owned by the taxpayer. Taxes such as direct taxes replenish the country's budget in a significant way. However, there is one drawback: it is possible to hide part of the calculation base, including taxes. This state of affairs leads to destabilization financial system country.
Income taxes and indirect taxes have a certain degree of correlation. While the studied category of fees is formed according to the principle of a premium on the cost of a product or service. Sellers include a share of these taxes in the goods sold. Then they give it to the state. This share does not apply to the company's profits and is not subject to income tax.
Importation of goods and taxation
The importation of goods and the payment of indirect taxes is an option for calculating and paying the country whose customs authority is releasing the goods.
- When importing goods from countries not participating in the Customs Union, this tax must be paid in the Russian Federation.
- And when importing from the EAEU countries, the tax must be transferred to the country where the owner of the goods is registered. The EAEU includes such countries as Belarus, RF, Kazakhstan, Kyrgyzstan, Armenia.
Payment procedure
The procedure for paying indirect taxes implies the responsibility of the declarant, that is, the buyer.
The following points should be taken into account:
- availability of VAT exemption;
- the customs procedure applied when importing valuables;
- VAT rate;
- calculation formula for tax.
Cases of exemption from VAT have been identified. In Art. 150 of the Tax Code of the Russian Federation there is a list of goods for the import of which you do not need to pay VAT.
The order of payment of indirect taxes also depends on the customs procedure under which the goods are subject to import.
The customs procedure is influenced by the goals of the release of goods in the Russian Federation, which is reflected in the table below.
Reports are submitted on indirect taxes to the local IFTS, where the buyer is registered.
It is necessary to determine VAT on the day the goods are accepted for accounting in accordance with the accompanying documentation. If the amounts are indicated in foreign currency, then they are converted into rubles at the current exchange rate of the Central Bank of the Russian Federation.
The tax payment deadline is up to the 20th day inclusive of the month that follows the month of the arrival of the goods. Part of the documents is prepared along with the payment:
- tax return for VAT;
- Bank statement;
- transportation documentation;
- supplier contract;
- other.
Declaration
The deadlines for submitting a declaration for indirect taxes are specified in clause 20 of the Treaty on the Eurasian Economic Union of May 29, 2014.
This protocol states that the declaration must be submitted by the 20th day of the month following the reporting one. The reporting month is:
- month of arrival of imported goods;
- the month in which the lease payment must be paid in accordance with the terms of the contract.
In addition to the declaration, taxpayers must provide a number of documents.
The indirect tax return consists of a standard cover page and three sections.
The first includes data on VAT on imported goods. Sections 2 and 3 contain information on excise taxes, they are filled out only if necessary. That is, if the company does not pay excise taxes, then it is only necessary to transfer the title page and the first section.
This section also contains the amount of VAT payable. In this case, all VAT is divided according to the type of product. To reflect total amount tax is set aside on page 030.
The second section contains information on all excisable goods, with the exception of alcohol products. Excise taxes are recorded according to the type of excisable goods. In this section, for each type of goods, information is given about the country from which the goods are shipped.
The third section contains information on alcohol.
Payment documentation
The declaration of importation and payment of indirect taxes is important documentation for:
- goods issued by importers from the EAEU countries;
- certification of the fact of import of goods into the Russian Federation from the territory of a member state to the EAEU and payment of taxes;
- submission to the tax authorities simultaneously with the declaration of taxes and other relevant documents.
The main purpose of the application is to confirm the fact of payment of these taxes and exchange this information with the tax authorities of the country from which the goods were imported.
The statement contains three sections and one annex:
- In the first section, the information is entered by the buyer or intermediary (if, according to the laws of the state into whose territory the goods are imported, these persons pay indirect taxes).
- The second section is intended for posting a record of registration of an application in tax authority.
- The third section is not always filled out - only in certain cases, listed in the fourth paragraph of the rules for filling out an application for indirect taxes.
Conclusion
In the case of indirect taxation, the seller of a product or service becomes an agent of monetary relations, acting as an intermediary between the state and the payer (the final consumer of the product).
Indirect taxes are characterized by the simplicity of collection and payment to the budget. Since these taxes are included in the price of goods and services, they are invisible and psychologically easier for payers to perceive.
The advantages of these taxes are mainly related to their role in the formation of the budget revenue line.
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