Tax policy, along with social, economic, monetary, credit, budgetary, and ecological policy, defines the process of socio-economic development of the territory, thus, objectively is encumbrance for the taxpayer. In the context of decelerating economic growth both on the scale of the Vologda Oblast and Russia finding the optimal model of tax policy is one of the major challenges. On the one hand, we should consider an objective factor: the enterprises and other legal persons who are taxpayers and generate revenues, are influenced by negative phenomena, such as reduction in working capital, decline in production, and decrease in investment that does not increase their tax potential. On the other hand, the population also experience negative consequences, such as reduction in real income, a slowdown in new jobs (or even reduction), etc. These circumstances dictate the need to maintain and encourage business activity, as well as fulfil social obligations. The latter are regulated by various normative legal acts. In particular, the Presidential decrees of May 7, 2012 stipulate the trend to create favorable conditions for increasing standard of living of citizens. The stated above explains the relevance of this material and provides a starting point for understanding the consequences of management decisions in the sphere of tax policy. The article, based on evolution and the taxation theory, characterizes problematic features and modern trends of tax policy. It proves that tax policy, in addition to the function of ensuring the formation of budget revenues, is obliged to fulfill the function of promoting economic growth and improving the level and life quality of citizens. Given the current economic and political situation the paper makes proposals (on the example of the Vologda Oblast) on the improvement of tax policy and the feasibility of a public debate on the problems of interaction between regional authorities and civil society
Keywords
fiscal policy, taxes, budget policy, formation of budget revenues