CALCULATION OF TAX BURDEN BASED ON SHORT-TERM FISCAL CHARACTERISTICS

Abstract

In the article the author determines the optimal tax burden on businesses due to decrease of economic growth on one hand, and increase of government revenues, on the other. The author proves that the state's intention to maximize the budget revenues using tax proceeds leads to the drop in the rates of the state’seconomic development and a reduction of economic activity. The author shows that tax burden and tax evasion rates have increased caused by insufficient tax policies which in its turn minimized the probable positive effects of using fiscal measures.

The purpose of the article is to investigate the impact of tax burden on taxpayers and to calculate the extremes of its production and fiscal functions which are based on short-term fiscal characteristics. Influence of tax burden on economic growth, various methods of assessing the impact of taxes, tax rates and taxation technologies are used. Usage of Laffer's curve as an important theoretical and empirical instrument for investigating tax burden is offered by the author as a traditional one.

The influence of taxes on economic agents by determining dependencies of linear and nonlinear types is outlined. The plotting of the Lafer curves for different types of dependencies is offered. The points of the local maximum which correspond the extramumes of the production and fiscal functions of the Lafer curves are found. The author calculates the level of tax burden in Ukraine on the basis of short-term fiscal characteristics. It can be seen from the chart that during 2000-2016 there is a gradual increase in tax burden to 8.9% in comparison to 2000.