Journal of Management Information and Decision Sciences (Print ISSN: 1524-7252; Online ISSN: 1532-5806)


Optimal decision making: influence of tax rates on the efficiency of tax systems

Author(s): Zharov, A. N., Valishvili, M. A., Shestemirov, A. A., Budkina, Y. S., Kashina, E. A., & Khadueva, Y. A.

This research aims to address the problems of social differentiation and social equity of the tax system of the Russian Federation taking into account socioeconomic indicators in comparison with the countries using a progressive taxation scale. The authors analyse the impact of tax rates on income inequality and the effectiveness of tax systems in Russia and four countries of Latin America (Argentina, Uruguay, Colombia and Ecuador) in mitigating social differentiation. The analysis relies on mathematical models of correlation and historical and comparative research methods. The authors conclude that taxes create a significant impact on the degree of income inequality and progressive personal income taxation can be an effective tool for mitigating social differentiation in Russia. This study belongs to a narrow body of research comparing the performance of tax systems in mitigating the problems of income inequality. The authors believe that the study will help state bodies make effective decisions aimed at reducing social pressures.

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