Economical sciences/1.Economical theory

Doctor of Economics Zhidkova E.Yu.

Stavropol State University

Impact of taxes on economic security: evolution of views and concepts

The interests of not only the society but also of all citizens, layers and groups of enterprises and organizations are connected with the tax system and tax policy. Taxes and tax policy in the Russian conditions have become the most important object of market reforms. Today, therefore, the crucial condition of ensuring the national security of the State is the realization of a policy of economic recovery [4].

To realize this strategic goal Russia must have highly effective tax system which should be based on knowledge of the evolution of its development, as well as the impact of taxes on all components of economic security in different periods of development of the economy, and hence the relevance of the selected topics.

In the early stages of formation and development of State its security regarded primarily as the ability to reflect external threats (a military attack by the other States). Accordingly, the role of taxes more clearly manifested itself in the process of forming financial funds, which were the country's armed forces.

Tax value in terms of financial and economic security is the very essence of taxes, which is inextricably linked with the appearance of the State and the need to develop financial funds of the State to perform its functions, the most important of which is historically the country's security. So, scientists W. Petty, D. Ricardo, D. Mille thought the economy stable and self-regulated system and taxes should only play the role of the State budget income sources. The classics of Marxism noted that taxes arise from the Division of society into classes and the appearance of a State [2].

"Taxes realize the economical existence of the State," – wrote C. Marks. The famous Swedish economist K.Viksele (the end of the 19 c. - the beginning of 20 c.) dealt with taxes, primarily as a way to smooth financing of public expenditure. He was an opponent of tax expenditures, reducing consumption. Ideas of K. Viksele were supported and developed the Swedish economist E. Lindale (mid-20 century). He believed that the different tax rates provide balance in society, thereby defending the idea of progressive taxation [7].

Tax policy affects almost all socio-economic areas of the country and it is inextricably linked with many elements of governance, such as monetary policy, the structural reform of economy, trade and industrial policy, pricing etc. Back to the late 18 century English Economist D. Riccardo, a representative of classical bourgeois political economy, focused its attention on the fact that the tax falls not only on those or other objects, how influence the processes of reproduction. In his writings an attempt was made to determine the relationship between taxes, prices and incomes.

British Economist D.M. Keynes paid a lot of attention to tax regulations, stressing that fiscal policy can have a powerful effect on economic growth, increasing employment, stimulating the propensity to consume. Considering the role of taxes in regulating the economy, stressing the positive role of relatively high taxes, arguing that reducing tax rates accompanied by a decrease in budget revenues, which contributes to the economic fragility of the State [8].

P. Samuelson-Nobel Laureate, renowned economist by his work “Economics” considered taxes and tax policies as important tools in managing the economy. He believed that through taxes stimulate macroeconomic growth and stability, declining unemployment and inflation, promoted economic growth.

A. Cecil Pigou – an English Economist of the late 20 century made the important conclusion that labour tax income should stimulate labour activity. In particular, they noted that the income tax is discriminatory to savings and to stimulate them he justified the so-called universal tax costs.

Specific tax policies of the State is determined by the overall economic strategy of the Government in power. Low taxes supporters, for example, believe that tax cuts leads to increased investment, the solution of problems of non-payment, the expansion of the taxable base. High taxes reduce the same incomes and profit of enterprise resulting in reduced consumer demand, investment activity, which ultimately leads to a drop in production. As a result, the increase in national income leads to an increase in tax collection [5].

So, in 70-80s. in Western countries the budget concept of A. Laffer has spread and has been recognized. A. Laffer assumed that tax revenues are the product of the two main factors: tax rates and tax base. Increase the tax burden can lead to an increase in government revenue only up to the limit until reduced taxable part of the national production. When this limit is exceeded, increase of the tax rate will not increase but decrease budget revenues (the so-called Laffer curve). In this regard, the task of business recovery ahead by facilitating tax rule. Lowering tax rates has led to increased production, which compensates for the temporary decrease in future income. Constructing quantitative relationship between taxation and income budget of innovativeness in the form of a parabolic curve, Professor A. Laffer concluded that lowering taxes also benefits the investment activity of the private sector

(BR / BRmax / normal zone, “forbidden zone” / TRmax / TR)

BR –budget revenues; BRmax – maximum budget revenues; TR – tax rate; TRmax-the maximum tax rate.

According to A. Laffer theory, the development of the shadow economy has feedback with the tax system, i.e. an increase of taxes increases the size of the shadow economy, legal and illegal shelter from taxes, in which most of the available income is not declared. Marginal rate of tax exemptions in budget A. Laffer finds 30% of the amount of income, which increases the amount of budget revenues, and that's when 40-50% proceeds when tax hits the "no-go zone", decreasing savings, which entails a disinterest in investing and those or other sectors of the economy and the reduction of tax revenue.

M. Friedman (American economist of the early 21 century) also believed that tax increases business investment growth, employment, inflation, and ultimately – economic growth and mitigate of social contradictions [1].

The debates on the theory of taxes in Russia before the revolution and largely raised the issue of taxes, their entity shapes, forms of their functions (A. Tvirus, N. Turgenev, and I. Ozerov, A. Isaev, A. Sokolov, etc.). Modern fiscal theories base their research on the analysis of specific issues of the tax system, identifying positive and negative effects and adjustment of its components, searching the optimal borders action of taxes on economic security of the country [9]

To sum up we can say that:

¾ The evolution of views on taxes in the system of economic security have shown that they can both stimulate economic development, and vice versa, to suspend it. While their role as a factor of economic security or economic threat depends on the specific situation, characteristics of the type of economic development, nature and stability of State authority;

¾ It is obvious that the decrease (increase) in taxes as a factor in economic growth is only effective for other institutional and structural reforms undertaken by the State through the implementation of socio-economic policy (banking, credit and monetary, budget, inflation, investment, foreign trade, innovation, currency, etc.);

- Определено, что теоретическим методам и средствам, которые предлагали и продолжают разрабатывать ученые различных экономических направлений, используемым в макроэкономическом направлении, необходима согласованность и направленность для решения наиболее важных задач развития общества. Иными словами должен быть продуман и скорректирован набор налоговых регуляторов для обеспечения экономической безопасности и предотвращения угроз и опасностей.

¾ Definitely the theoretical methods and tools that were yet offered and continue being developed by the scientists of different economic activities in the macroeconomic direction, coherence and direction to address the most important tasks of society development. In other words the set of tax controls to ensure the economic security and the prevention of threats and dangers must be created and adjusted.

Literature.

1.Dadashev A.Z. Of the tax policy in the context of the formation of innovation model of economic growth / А.Z. Dadashev // Finance and credit, № 34 (322) – 2008. p.35-46

2. Zhidkova E. Yu. Taxes and taxation: training manual / E.Yu. Zhidkova. – 2^nd edit., reworked and added. – М.: Eksmo, 2009. – 480p. – (New economical education)

3. Iliin A.V. Russian taxation system на рубеже 21 века / А.V. Iliin // Finance, № 4, 2010. – p.31-35

4. Kochergina T.V. Economical security, Rostov on/ D: Phenix, 2009. – 445p.

5. Kachur O.V. Taxes and taxation: учебное пособие / О.V. Kachur. – М.: KNORUS, 2010. – 304p.

6. Mondushchenko O.V., Pinskaya M.R. Taxes and taxation: training manual /Under the editorship of L.I. Gonchrenko – М.: Publishing and trading Corporation «Dashkov and K», 2009. – 334p.

7.Economical security of Russia: Basic course: tutorial / Ynder the editorship of V.K. Senchagov. – 3^rd edit., reworked and added. – М.: BINKOM. The laboratory of knowledge, 2009. – 815 p.

8. Economical and national security: Tutorial / Under the editorship of E.A. Oleinikov. – M.: Publishing House «The Exam» - 2009. – 768 p.

9. Economical security of Russia: Basic course: tutorial / Under the editorship of V.K. Senchagov. – 3-е edit., reworked and added. – M.: BINKOM. The laboratory of knowledge, 2009. – 815 p.