FORMATION OF BUDGET REVENUES AT THE EXPENSE OF PERSONAL INCOME TAX IN UKRAINE

Abstract

The article examines the budgetary role of the personal income tax in the formation of budgets at all levels. The analysis of tax revenues of local budgets of Ukraine was carried out. The role of interbudgetary transfers in the formation of their incomes was assessed. The author compared the domestic structure of tax revenues of local budgets with a similar structure in developed countries. All this allowed the author to identify and outline the actual problems of personal income tax and the financial decentralization carried out in Ukraine. In order to increase the income of taxes from the income of individuals and to simultaneously ensure a stable and sufficient amount of tax revenues to the local budgets of Ukraine, the author developed a whole series of measures. It is proposed to constantly support economic growth in the regions and in Ukraine as a whole. It is proposed to create additional jobs by state authorities and local governments at the same time. It is proposed to reduce the tax burden from personal income tax on less protected sections of the population. This tax, in the opinion of the author, should equalize the incomes of the population through progressive rates in taxation. There is a well-founded need to transfer personal income tax to local taxes. Personal income tax must be wholly or partly local. This will increase the tax powers of local self-government bodies to collect taxes from the budgets of territorial communities. The author proposes to replace the non-targeted interbudgetary transfers at the expense of personal income tax at differentiated long-term additional tax rates. The need to expand the powers of local self-government bodies regarding joint administration of local taxes and fees with the state tax service is also justified. Such proposals of the author are aimed at increasing the income tax of individuals to the budgets. The proposals will make it possible to provide local budgets of Ukraine with their own sources of income. The proposals will lead to a deepening of tax decentralization. Implementation of the developed proposals in practice will allow local self-government bodies to increase the amount of public goods of local importance for residents of their territorial communities. This will allow more efficient performance of delegated and own powers.