Simulation Modeling of the Progressive Scale of Individual Income Tax Rates in the Ukraine
The article suggests a different approach for the choice of the tax rates on the income of natural persons, based on the simulation modeling, which unlike the other approaches makes use of both indicators of social security and of taxation burden rates, so that the irregularity in the distribution of income, in form of wages and of the tax burden on individuals will be reduced and budget revenues will be increased. It has been proven that the most appropriate progressive scale for the implementation in Ukrainian tax practice is as the following: 10% for wages up to 3 minimum salaries, 15% of the wages ranging between 3 to 10 minimum salaries and 25% for excesses of more than 10 minimal salaries.