Author: Tatyana D. Odinokova, Cand. Sc. (Econ.), Associate Prof. of State & Municipal Finance Dept.

Abstract: The paper considers the organization of personal income taxation in Russia and foreign countries from the perspective of its social orientation. Particularly, it defines the specifics of the income taxation, analyzes tax burden on the payers of personal income tax in developed and developing countries, and juxtaposes the use of the differentiated system of the taxation of citizens’ incomes in Russia and developed countries. The author makes calculations and examines the influence of the citizens’ tax burden on society stratification, reveals the drawbacks of proportional scale of the personal income tax. The article suggests a number of measures which, on the one hand, will allow the state to ensure that the stable centralized monetary funds are formed, and on the other hand, to raise employment and competitiveness of citizens as well as to promote fair income distribution changing the tax structure in more balanced way and thus improving the efficiency of the taxation system.

Key words: social orientation; tax reform; tax burden; taxation of incomes; society stratification; social inequality; progressive scale.