functions reflect the economic substance of the tax.This is due to the fact that the tax system in the country, their cumulative size, demonstrate the degree of realization of the potential of this tool distribution and redistribution of social wealth.
Depending on what the state received taxes and fees, we can talk about those functions that they perform in society.Besides, the economic theory is not able to answer the question about the functions performed by taxes and what they need to perform ideally, what should be their types and sizes.
most popular belief is now considered that taxes most effectively fulfill two functions, it is - the fiscal function of taxes and distribution.
First, the fiscal function of taxes is one of the most important, not only because it is implemented in the vast number of countries.Its versatility lies in the fact that it is not mediated by any socio-economic system of the state and its economic system.
This function creates financial funds and reserves of any country, and that is the fiscal function of taxes creates the necessary conditions for the redistribution of social wealth between the different social and economic groups, business entities, sectors of the economy.
As you know, any change in the amount of tax revenue significantly affects economic activity.And here we have in mind not only the decrease of these revenues, but their increase, as in this case, may be exacerbated social tensions.Therefore, it is extremely important to achieve this state of affairs, in which will be provided by the redistribution of social wealth on the principles of economic viability.Enforcement of this provision allows for a combination of state and public interests at the level of opportunity for both sides of admissibility.Hence the conclusion is formed, according to which the objective becomes necessary that the fiscal function of taxes was supplemented by regulatory, or as it is called, of the distribution.
Nature distribution mechanism was already known at the stage of initial accumulation of capital.The current, modern its content largely unchanged.At the moment, the distribution function of tax acts as a necessary and effective tool to stimulate the process of production, its technological modernization, maintain optimal rates.
use taxes as a method of formation of state funds objectively necessitates contact with the tax process by its participants - enterprises, companies and the population.In this process, the contact part of the distribution function is further enhanced.If the period of accumulation of capital, taxes mainly involved in the creation of production as such, at the present stage, more taxes manifest themselves as a regulatory tool.The operation of this tool is realized through taxes and fees, tax rates and benefits of preferences applied to the various participants of economic sanctions.This indicates that the fiscal policy directly intervenes in the process of economic relations in society.By the way, this implies one more function - control, the essence of which derives from the very nature of this phenomenon, such as taxes.The redistribution of the social product by means of taxes, in this case, is inseparable from the tracking of the movement of funds in the economy.
Ultimately, summarizing all the functions that perform the taxes, we should recognize that they are designed to ensure a balance between the state and public interests and create favorable conditions for progress.
