Savings and taxes of individuals in the Russian Arctic: an analysis of interference

Abstract

Income tax, on the one hand, is key and revenuegenerating for regional budgets, on the other -is social nature and affects the level of real incomes of the population. This article describes to assessing the impact of the existing tax burden of an individual on the level of his life and the ability to form savings. The main purpose of the research is to establish complementarily between tax burden of an individual and his savings level based on an equitable distribution of population incomes, taking into account the characteristics of the region. This assessment is particularly relevant in the regions of the Russian Arctic, where, due to the harsh climatic conditions of residence, compensation for the costs of livelihood of the population is significantly higher than in other regions of the Russian Federation. The incomes, savings, tax burden and the standard of living of the population in the Russian Arctic are analyzed. The trend dynamics has been identified and the interrelationships of the studied indicators have been determined. Based on the author's methodological approach, the maximum possible tax burden is determined, which reflects the maximum level of the tax rate in comparison with the personal income of an individual residing in the regions of the Arctic zone. A proposal to improve the system of taxation of individuals for the most equitable distribution of the tax burden in increased discomfort conditions of residence of people are formed. To address regional specifics, we suggest using the subsistence minimum, for example, as a non-taxable minimum for forming the tax base providing a socially fair redistribution of income between different segments of the population and leveling, thereby, the difference in living in certain territories.