Tax concessions and their impact on economic development under restrictions of global imbalance
Abstract
Tax concessions and their impact on economic development under restrictions of global imbalance
Incoming article date: 15.12.2015The article highlights the problem of global imbalance, which are the result of divergence of economic indicators in different countries, which manifests itself not only in the uneven distribution of natural resources, but also in the accelerated growth of emerging economies with the demographic decline in developed countries. The article discloses significance of state regulation instruments used to come out from a recession phase of the global economic crisis, wherein not only financial support of the stability of financial system, but tax incentives designed to encourage entrepreneurship, as a source of economic growth, are effective. Due to chosen strategy and formulated background, tax system reform in the country, held in conjunction with adjustments to the current tax legislation, serves as the most efficient measure to overcome the crisis and get economy back on track. Implementation of this package plan not only meet the needs of the population and make up for human potential, but also stimulate social production, development of its structure and the pace of modernization.
Keywords: global imbalances, divergence of indicators, restructuring of the national economy, global economic crisis, governmental regulation, tax incentives