Functions of taxes in the economy.

The concept of tax includes a compulsory and non-refundable fee, which is paid to the bodies of the state apparatus for financing and supporting the activities of state apparatuses and municipal institutions. Its influence can be regarded as internal and external economy, and the amount of taxation is set by the state for various reasons - from the redistribution of individual incomes of the country's population to the elimination of foreign economic effects.

It should be noted that the concepts of tax and collection are radically different. The main difference is the obligation of payment and reimbursement. Unlike the tax, fees are made only upon a written agreement of the payer, and reimbursement guarantees the provision of state, municipal and other bodies whose funds are charged, providing them with counter services to the payer. Another difference is the basis of funding. Taxes are aimed at financing a public facility, while the appropriateness of charges by the state apparatus is not established. Although the functions of taxes and fees are similar.

The main functions of taxes and fees depend on their classification system. This system is a division:

• On the account of objects of taxation. The rates of direct taxes are levied on income or property of legal entities and individuals (profit, payment for the use of land and natural resources, etc.). Indirect tax is levied on the price of goods, services or work by summing them (VAT, excise stamps, customs duties , etc.).
• On types of rates. Rates can be proportional, progressive and regressive. Rates of a proportional type are set for income, regardless of its size, for the same percentage (income tax). Progressive rates increase their importance depending on the change in the amount of taxable income in the big party (transport tax). Regressive rates decrease their importance depending on the increase in income (single social tax or state duties).
• On the levels of management. On the levels allocate federal, regional and local taxes. The federal tax is established by the State Duma and the Federation Council and operates throughout the state, and is charged at uniform rates. This is VAT, excise stamps, income profit organizations etc. Regional taxes are formed by the Tax Code and a set of laws approved by regional authorities (transport tax, property tax, etc.) Local taxes also impose property and land of individuals.

Thus, the economic system has identified the fiscal, regulatory, distributive, control and social functions of taxes. Consider each kind of function of taxes separately.

Fiscal (main) function is typical for any type of state apparatus. It participates in the formation of state monetary funds, creating a material base for the functioning of the state economy.

The regulatory function is the distribution of taxes as active agents to support the reproduction processes, stimulating or reducing its development activity, participating in the establishment of accumulative capital and regulating the effective demand of the population.

The control function assesses and identifies the need for corrective changes in the tax system and policy, creating prerequisites for the formation of the process of education and distribution of revenues coming from the subjects of the economy.

The distribution function plays the role of the distributor of tax payment transactions between legal entities and individuals in various spheres and sectors of the economy.

A social function is a combination of distributive and regulating tax functions. This function is involved in protecting the constitutional rights of citizens.