Transformation of Direct and Indirect Taxation’s Correlation as a Necessary Condition for Social and Economic Development of the State

Abstract

The present study examines the transformation of direct and indirect taxation that has taken place in modern tax systems since the beginning of 2000-is. The study shows that direct and indirect taxation have different fiscal potential and influence the social and economic development of the state differently. On the basis of the carried out analysis, the study proves that in the OECD and EU member States correlation of direct and indirect taxation is constantly changing depending on economic opportunities and aims of the state while tax system of the Russian Federation practically does not shows such tendencies. The purpose of this study is to offer the general recommendation for improving tax policy of the Russian Federation with the aim of stimulating the social and economic development of the state. The purpose of the study predetermined the choice of applied research methods, among which comparative method should be highlighted.