The Role of Stimulating Effects of Personal Income Tax in the Implementation of National Projects

Abstract

The subject of the study is the tax tools used to facilitate the implementation of the tasks of national projects. The purpose of the work is to assess the stimulating effects of personal income tax in the context of the implementation of national projects. The article considers national projects that are part of the “Human Capital” block and are of a social nature. The potential opportunities have been identified and the real results of using the stimulating effects of personal income tax to help achieve the targets of the national projects “Healthcare”, “Education” and “Demography” have been revealed. The conclusion is made about ensuring greater efficiency in achieving the targets of national projects of direct budgetary mechanisms against indirect tax instruments. At the same time, it is determined that tax instruments that entail less burden on the budget system can also contribute to achieving the goals set. It is concluded that, despite the opportunities available in the personal income tax system due to the provision of social and standard tax deductions for children, they are not fully implemented and do not contribute to achieving the goals of national projects. It is necessary to improve the procedure for personal income tax taxation both in terms of bringing the amount of tax deductions provided in line with the real cost of treatment and education services, and in terms of indexing the amounts of standard deductions for children with a focus on their provision to the least well-off segments of the population, which is achieved by simultaneously increasing the amount of deductions provided and limiting the amount of annual income that allows you to qualify for receiving such deductions.