The effectiveness of implementing the progressive taxation scale for the income of natural persons (by the example of St. Petersburg)
One of important problems in the modern world is the income gap. The increase in population differentiation is the reason for the decline in economic growth. This problem is particularly relevant for large cities, including St. Petersburg. The main source of cash income for St. Petersburg residents, as well as for residents of other the country’s regions, is remuneration. The high level of differentiation for this indicator results in the high level of population inequality in relation to their income on the whole. Due to commissioning the progressive taxation scale for the income in St. Petersburg, the total amount of calculated tax will increase by more than 70 billion roubles, as well as the share of personal income tax revenues of the budget of the subject will rise, and the most important result may be significant reduction of funds rate and cash gap among decile groups. The decline in population income inequality will result in increasing consumer demand, development of the middle class and reduction of costs for maintaining order and social security.