EMPIRICAL RESEARCH OF THE PLACE AND ROLE OF TAXES IN SOCIETY

Abstract

National governments impose taxes on their citizens and businesses as a means of generating public revenue, which is then used to meet public needs. In addition, taxes are used to redistribute wealth, reduce social inequality, and promote economic justice. Accordingly, there are various types of taxes, the most common of which are: income taxes; consumption taxes; wealth taxes; business taxes; and special taxes (excise taxes). A country forms its tax revenue structure depending on the state financial policy. Global practice shows that income taxes dominate the structure of tax revenues in developed countries, while consumption taxes are prevalent in developing countries. Taxes play an important role in the economy: from accumulating resources to regulating economic growth. Governments also use taxes as a means of discouraging undesirable activities, such as alcohol consumption, smoking, etc. Governments use taxes to finance government and public social projects, as well as to create a favorable business environment in the country for economic growth. The government attaches great importance to the development of human capital, and education is central to this development. Tax revenues are used to finance, equip and maintain the education system. Without taxes, government contributions to the social welfare and healthcare sectors would not be possible. Taxes are used to finance services such as health care, medical research, social security, etc. Other important sectors include infrastructure development, transportation, housing, etc. In addition to social projects, governments also use the taxes collected to finance sectors that are crucial for the well-being of their citizens, such as security, research, environmental protection, etc. Military operations on the territory of Ukraine have changed the main purpose of taxes, reducing their role in generating budget revenues and significantly increasing budget expenditures that are not typical in peacetime.