Given that in the conditions of a developed commodity economy the tax is an instrument for distribution and redistribution of the national income, with which revenues are collected, its general economic essence can be presented as follows: the tax is an objective financial category that expresses certain monetary relations related to the activity of the people on the distribution and redistribution of the national income and the formation of a part of the centralized monetary fund of the state.
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Of course, the distribution and redistribution of income and the formation of income is not all that can be said about the general economic content of taxes. In clarifying it, space should be given to the tax mechanism (planning, organization and management of taxation), which solves certain fiscal and economic tasks. From this point of view, the tax distribution and redistribution is the result of a deliberate use of a certain tax technique, of certain tax instruments for the accumulation of funds.
The collection of state revenues (the functioning of the tax mechanism) allows for the implementation of tax operations in which people and institutions participate. In the process of conducting the tax operation, a system of connections and relations affecting the interests of citizens, enterprises, organizations and institutions, charged with the accumulation of income-action, the end result of which is the regulation of income and the formation of funds. Use the income tax calculator for the best calculation of the same now. The immediate purpose of taxation can be the impact on production, consumption and exchange. This impact is always inextricably linked with the formation of funds, which is a prerequisite for a new continuation of the distribution process, already in the form of targeted costs. In this process, taxes can perform tasks at two levels.
- Solving fiscal, economic and social tasks in the process of revenue accumulation (the formation of the centralized monetary fund).
- Solving economic and social problems in the process of spending the funds accumulated through taxes.
As a result of the implementation of these two groups of tasks, the majority of the funds are returned to where they were taken in the production and non-production areas. This shows that in the conditions of the developed commodity economy the tax distribution and redistribution is a component of the movement of the newly created value in monetary form, conditioned by the existence and functioning of the state-movement, which in practice determines the emergence of financial relations between citizens, enterprises, public and political organizations and the state.
Taxes and taxation express part of the movement of money in the economy, which has a conditional remunerative nature and is valid for finance in general.On this basis, taxes always contain one of the main characteristics of finance the movement of funds on a conditional basis. Their use is determined by the characteristic, typical for finance distribution and redistribution of income in the process of fund formation. They are also closely related to the possibilities for the implementation through finance of stimulating, regulating, directing and managing economic, social and political processes.