A little about taxes and their distribution. Why crowdfunding fails
Reading the article GreatNonentity on the distribution of taxes, as well as comments on it, I was interested to clarify the principle of the budget system. Apparently falling into the appropriate mood, this served to some extent as an incentive, to postpone laziness, register and try to get out of the state of the chronic reader.
Without pretending to possess secret knowledge (I did not work as Minister of Finance, I do not have an economic education), I would like to describe some aspects of the budget system, based on my experience in various budget institutions. I will try to write in simple words, because I myself love clear explanations.
So, let's start from the beginning. What is a budget?
Wise Wikipedia, tells us, this is a scheme of income and expenses of a certain object (family, business, organization, state, etc.), established for a certain period of time.
In the Russian Federation there are three main types of budgets:
All this is regulated by the Budget Code of the Russian Federation, as well as various federal, regional and local regulatory documents. The set of all budgets is called the consolidated budget, and includes everything except extrabudgetary funds (social insurance).
Each budget has revenues and expenditures. Income is formed from taxes and other fees that are determined to be received at the appropriate budget level. There are fees coming into local (municipal budgets), there are fees forming regional budgets, and there are fees coming into the federal budget, respectively. The expenditure part contains all the expenses that must be made for the functioning of all state institutions.
There is also the concept of inter-budget transfers, this is when money from one budget level is transferred to another level. For example, subsidies of the federal budget to regional ones, for the implementation of large federal projects, or for the development of the regional economy. Most regions of the Russian Federation are subsidized in one way or another and receive additional funds from the federal budget. But the reasons for these subsidies may be different, somewhere it’s helping a weak region that is not yet able to support itself, but somewhere, like in our Rostov Region, financing federal programs related in particular to the World Cup (t. E. Formally, our region is subsidized, but these subsidies do not go to the expenditures of the regional budget, but to specific target projects, such as the construction of a stadium or a new international airport).
Who makes up the budget? The main budget of the country is prepared and submitted by the Ministry of Finance. It is they who do not sleep at night, sprinkling over the numbers and thinking how to satisfy everyone who wants money, having "on hand" not only limited resources, but, in principle, unpredictable ones.
Accordingly, the Ministry of Finance of the Russian Federation, this is the main manager of funds. There are similar managers at all budget levels, in the regions these are regional ministries and departments, in municipalities planning and financial departments, etc. They make up the regional and municipal budgets. Each recipient of budget funds, at any budget level, has its own fund manager. State institutions can simultaneously be the recipient of funds from a higher manager, and at the same time the manager of funds for subordinate institutions. For example, the regional ministry of finance (or department, in different regions in different ways) will be the manager for institutions of regional subordination and at the same time the recipient for the federal Ministry of Finance.
Let's see how these budgets are filled.
Taxes received in local budgets:
Taxes received in regional budgets:
Taxes to the federal budget:
Those. most of the money goes to the federal budget, and it also carries the main expenses.
How are budget expenditures formed. 80 percent is a different obligation, i.e. expenses that in any case have to be made. Because I am well acquainted with the education system, I will try to show this on the example of an educational institution of regional subordination (standard technical school).
When planning the funding volumes of such an institution, first of all, its maximum contingent capacity is taken into account, i.e. how many students can be recruited in accordance with sanitary and fire safety requirements (suitability of the premises for the educational process). Based on the planned number of students and, accordingly, educational groups (like classes at a school), curricula are drawn up in accordance with the Federal State Educational Standard (educational standards). Curricula contain the required number of training hours that will need to be covered by the salary of teachers, as well as other expenses to ensure the educational process. The vast majority of the costs of such an institution are wages. Payments for utilities, taxes (land, property), etc. will also be included in mandatory expenses. For the convenience of calculations, the fund manager (in this case, the regional ministry of finance) determines the amount that falls on one student (the principle of "per capita financing"). Accordingly, an admission plan is approved every year with the number of applicants to be accepted. If the plan is implemented, then the financing comes in full, if not implemented, then it is reduced in proportion to the shortfall.
This is a very simplified and crude scheme, but allows you to understand the basic principles. One way or another, similar principles apply in any budget institution. First, the obligatory part of the costs is determined, and then, if possible, everything else is funded. Accordingly, the principle of competition also applies between budgetary institutions, who can attract more citizens will receive more funding.
Now I would like to return to the initiative on self-distribution of taxes.
As we can see from the list, personal income tax is only one part of the budget, and not by the way large (although significant). Those. even if it is completely excluded, the budget system will not change, it just will have less money, and accordingly some programs will not receive funding.
Regarding the possibility of distribution of this part of the budget by citizens, I would like to highlight a few points:
In the comments to the article, Poland was cited as an example, where you can deduct 1% of your taxes to a special account, and indicate what specific goals this percentage will be spent on. Moreover, the list of goals is predetermined and approved. In my opinion, this is the maximum possible option, which in any case is mostly a populist measure. These miserable amounts do not have any effect on the balance of the budget system. But it can just be nice for people to feel involved.
I think a similar principle (with a small part of the tax) can be implemented within the framework of, for example, a region, on a voluntary basis. And spend this money on some major social events of regional significance.
I would also like to touch on the GreatNonentity article raised in the comments .topics that citizens should know how much tax they pay, and ideally pay them on their own.
In accordance with the Labor Code of the Russian Federation, the employer is obliged to pay the employee a salary at least twice a month, as well as without fail, in writing, to notify the employee of the components of the salary, this is the so-called payroll.
A pay sheet must be issued every month, under the signature of the employee. Not issuing a settlement sheet is a violation of Art. 136 of the Labor Code of the Russian Federation, respectively, this is before the first inspection of the labor inspectorate or tax.
The settlement sheet contains:
1. Full name employee, position, unit, personnel number;
2. The period for which accruals are made;
3. Hours worked (hours);
4. Components of wages:
- salary (tariff rate, official salary, basic official salary);
- allowances for work in adverse conditions, for work in special climatic conditions, regional coefficient, for combining professions (positions), for length of service, work intensity, etc .;
- bonuses (one-time, quarterly, annual, for achievements in work, etc.);
5. The allowance for temporary disability;
6. Holiday;
7. Cash compensation for delayed wages and other payments to the employee;
8. Total accrued amount;
9. Amount payable;
10. Salary deductions:
- PIT amounts and insurance contributions to extra-budgetary funds;
- union dues;
- advance payment not worked out and (or) received by the employee;
- amounts excessively paid to the employee as a result of counting errors;
- penalties on writ of execution;
- other deductions.
Thus, any employee receiving a settlement sheet, sees how much and where he pays money. Literally holds in his hands all the calculations for these amounts. Another question is that most workers are slaughtered on this matter, especially if the salary is constant, and does not change from month to month.
Thanks for attention! I hope this short text was interesting and useful, if anyone has clarifications on the essence of the article, I will accept them with pleasure.
Without pretending to possess secret knowledge (I did not work as Minister of Finance, I do not have an economic education), I would like to describe some aspects of the budget system, based on my experience in various budget institutions. I will try to write in simple words, because I myself love clear explanations.
So, let's start from the beginning. What is a budget?
Wise Wikipedia, tells us, this is a scheme of income and expenses of a certain object (family, business, organization, state, etc.), established for a certain period of time.
In the Russian Federation there are three main types of budgets:
- Federal budget
- Regional budgets
- Municipal budgets
All this is regulated by the Budget Code of the Russian Federation, as well as various federal, regional and local regulatory documents. The set of all budgets is called the consolidated budget, and includes everything except extrabudgetary funds (social insurance).
Each budget has revenues and expenditures. Income is formed from taxes and other fees that are determined to be received at the appropriate budget level. There are fees coming into local (municipal budgets), there are fees forming regional budgets, and there are fees coming into the federal budget, respectively. The expenditure part contains all the expenses that must be made for the functioning of all state institutions.
There is also the concept of inter-budget transfers, this is when money from one budget level is transferred to another level. For example, subsidies of the federal budget to regional ones, for the implementation of large federal projects, or for the development of the regional economy. Most regions of the Russian Federation are subsidized in one way or another and receive additional funds from the federal budget. But the reasons for these subsidies may be different, somewhere it’s helping a weak region that is not yet able to support itself, but somewhere, like in our Rostov Region, financing federal programs related in particular to the World Cup (t. E. Formally, our region is subsidized, but these subsidies do not go to the expenditures of the regional budget, but to specific target projects, such as the construction of a stadium or a new international airport).
Who makes up the budget? The main budget of the country is prepared and submitted by the Ministry of Finance. It is they who do not sleep at night, sprinkling over the numbers and thinking how to satisfy everyone who wants money, having "on hand" not only limited resources, but, in principle, unpredictable ones.
Accordingly, the Ministry of Finance of the Russian Federation, this is the main manager of funds. There are similar managers at all budget levels, in the regions these are regional ministries and departments, in municipalities planning and financial departments, etc. They make up the regional and municipal budgets. Each recipient of budget funds, at any budget level, has its own fund manager. State institutions can simultaneously be the recipient of funds from a higher manager, and at the same time the manager of funds for subordinate institutions. For example, the regional ministry of finance (or department, in different regions in different ways) will be the manager for institutions of regional subordination and at the same time the recipient for the federal Ministry of Finance.
Let's see how these budgets are filled.
Taxes received in local budgets:
- Land tax
- Personal property tax
- A single tax on imputed income
Taxes received in regional budgets:
- Corporate property tax
- Transport tax
- Gambling tax (in some regions)
- Simplified tax system
Taxes to the federal budget:
- Value Added Tax (VAT)
- Income tax
- Excise taxes (alcohol, tobacco)
- Personal income tax (personal income tax 13%)
- Mining tax
- Water tax
- Fees for the use of objects of the animal world and for the use of objects of aquatic biological resources
- State duty (starting from customs, ending with registration at the registry office)
Those. most of the money goes to the federal budget, and it also carries the main expenses.
How are budget expenditures formed. 80 percent is a different obligation, i.e. expenses that in any case have to be made. Because I am well acquainted with the education system, I will try to show this on the example of an educational institution of regional subordination (standard technical school).
When planning the funding volumes of such an institution, first of all, its maximum contingent capacity is taken into account, i.e. how many students can be recruited in accordance with sanitary and fire safety requirements (suitability of the premises for the educational process). Based on the planned number of students and, accordingly, educational groups (like classes at a school), curricula are drawn up in accordance with the Federal State Educational Standard (educational standards). Curricula contain the required number of training hours that will need to be covered by the salary of teachers, as well as other expenses to ensure the educational process. The vast majority of the costs of such an institution are wages. Payments for utilities, taxes (land, property), etc. will also be included in mandatory expenses. For the convenience of calculations, the fund manager (in this case, the regional ministry of finance) determines the amount that falls on one student (the principle of "per capita financing"). Accordingly, an admission plan is approved every year with the number of applicants to be accepted. If the plan is implemented, then the financing comes in full, if not implemented, then it is reduced in proportion to the shortfall.
This is a very simplified and crude scheme, but allows you to understand the basic principles. One way or another, similar principles apply in any budget institution. First, the obligatory part of the costs is determined, and then, if possible, everything else is funded. Accordingly, the principle of competition also applies between budgetary institutions, who can attract more citizens will receive more funding.
Now I would like to return to the initiative on self-distribution of taxes.
As we can see from the list, personal income tax is only one part of the budget, and not by the way large (although significant). Those. even if it is completely excluded, the budget system will not change, it just will have less money, and accordingly some programs will not receive funding.
Regarding the possibility of distribution of this part of the budget by citizens, I would like to highlight a few points:
- Let's start with the banal, not everyone has the Internet (imagine :)), respectively, the principle of a personal account on the site will not provide access for most citizens to this system, even if there is Internet, it does not yet provide the user with the necessary level of knowledge.
- As already mentioned, most of the budget expenditures is a boring obligation. We cannot vote on the need to pay salaries to teachers or doctors.
- Accordingly, only some targeted projects can be financed by such a principle. At the same time, it is necessary to immediately exclude projects of federal significance, because they will be supported by regions that receive some kind of buns from these projects, and there will be opposed regions. It is also unlikely that the inhabitants of the European part of Russia will agree to pay their development taxes, for example, the Far East, although this is an absolute necessity and is now happening to some extent.
- Some small projects of regional and local significance remain. In general, at this level, citizens already have enough leverage. Those. if I want to put new asphalt on my street, I can walk and hammer the district administration. At the same time, the self-distribution system will not help me in any way, I will vote for my street, the rest will vote for my own (roughly, of course, but it will turn out like that), respectively, anyway, the district or city administration will set the order in accordance with the available funds. Exactly what is being done now.
In the comments to the article, Poland was cited as an example, where you can deduct 1% of your taxes to a special account, and indicate what specific goals this percentage will be spent on. Moreover, the list of goals is predetermined and approved. In my opinion, this is the maximum possible option, which in any case is mostly a populist measure. These miserable amounts do not have any effect on the balance of the budget system. But it can just be nice for people to feel involved.
I think a similar principle (with a small part of the tax) can be implemented within the framework of, for example, a region, on a voluntary basis. And spend this money on some major social events of regional significance.
I would also like to touch on the GreatNonentity article raised in the comments .topics that citizens should know how much tax they pay, and ideally pay them on their own.
In accordance with the Labor Code of the Russian Federation, the employer is obliged to pay the employee a salary at least twice a month, as well as without fail, in writing, to notify the employee of the components of the salary, this is the so-called payroll.
A pay sheet must be issued every month, under the signature of the employee. Not issuing a settlement sheet is a violation of Art. 136 of the Labor Code of the Russian Federation, respectively, this is before the first inspection of the labor inspectorate or tax.
The settlement sheet contains:
1. Full name employee, position, unit, personnel number;
2. The period for which accruals are made;
3. Hours worked (hours);
4. Components of wages:
- salary (tariff rate, official salary, basic official salary);
- allowances for work in adverse conditions, for work in special climatic conditions, regional coefficient, for combining professions (positions), for length of service, work intensity, etc .;
- bonuses (one-time, quarterly, annual, for achievements in work, etc.);
5. The allowance for temporary disability;
6. Holiday;
7. Cash compensation for delayed wages and other payments to the employee;
8. Total accrued amount;
9. Amount payable;
10. Salary deductions:
- PIT amounts and insurance contributions to extra-budgetary funds;
- union dues;
- advance payment not worked out and (or) received by the employee;
- amounts excessively paid to the employee as a result of counting errors;
- penalties on writ of execution;
- other deductions.
Thus, any employee receiving a settlement sheet, sees how much and where he pays money. Literally holds in his hands all the calculations for these amounts. Another question is that most workers are slaughtered on this matter, especially if the salary is constant, and does not change from month to month.
Thanks for attention! I hope this short text was interesting and useful, if anyone has clarifications on the essence of the article, I will accept them with pleasure.