Tax policy as a component of achieving social development

Abstract

Relevance of research topic. Under conditions of economic transformations it is necessary to ensure a reasonable approach towards the formation and implementation of tax policy in the medium- and long-term prospect. In case of its reforming, it is important to take into account the conditions of internal and external economic environment which will contribute to the institutionalization of the tax system. It is necessary to increase the efficacy of the tax policy as a component of achieving social development. Formulation of the problem. Under conditions of the instability of social development it is extremely important to further strengthen the adaptivity of the tax policy mechanism to exogenic and endogenic challenges which negatively influence the financial safety of the country. Further development of provisions of the institutional approach towards the development of the tax policy will allow to take into account the existing state of the socio-economic environment in case of economic transformations and to direct them towards resolving the most relevant social problems. Analysis of recent research and publications. Foreign scholars studied tax policy and its influence on the social development, among them E. Atkinson, J. Buchanan, J. Canes, A. Laffer, R. Musgrave, G. Mankiw, D. Nordhaus, A. Pigou, P. Samuelson, J. Stiglitz, V. Tanzi. Works by V. Andrushchenko, V. Vyshnevskyi, A. Krysovatyi, M. Kuzheliev, L. Lysiak, A. Mazaraki, V. Makohon, M. Pasichnyi, L. Sidelnikova, I. Chugunov were dedicated to matters of development and implementation of tax policy as well as increasing the level of its efficiency. Selection of unexplored parts of the general problem. The mechanism of tax policy as a component of achieving social development may require further study. The purpose of the research is to expose tax policy as a component of achieving social development while taking into account the provisions of institutional theory. Research methodology. Dialectic, systemic and structural methods as well as historical and logical approaches have been used. Methods of statistical analysis were used to study the forming of tax receipts to the budget of the country. Results of work. We have performed calculations and conducted the analysis of institutional ratios of key indicators in the tax policy for the period of 2013-2019. The results of the conducted study create preconditions for using institutional approach towards the development of tax policy by taking into account the mutual influence of formal and non-formal institutions as well as institutions of the state and interstate regulation, self-regulation and private regulation. Area of application of results. Conclusions and results of this study may be used for developing measures of the state tax policy as well as in the educational and scientific process of higher education institutions. Conclusions. The conducted study substantiated theoretically and practically the peculiarities of using institutional approach to ensure the proper institutional basis for forming tax policy as a component for ensuring social development. It has been determined that an important task of the tax regulator as an institutional mediator in tax relations between the State and taxpayers is to decrease transactional expenses as well as to solve the problem of asymmetric information inherent to tax relations.

Keywords

• tax
• tax policy
• taxation
• social development
• tax regulation
• institutionalism
• transaction expenses