Taxes and Government Payments and their Impact on Population Income

Abstract

The article examines the influence of taxes and government expenditures on the incomes of the population. In the modern economy, personal consumption is the most important factor, which largely depends on economic growth and directions of structural restructuring of the national economy. Determining the role of taxes and government spending on the purchasing power of the population plays an important role in increasing income growth and the population's standard of living. It was established that the growth of state payments to the population became one of the factors of increasing disparities between the amount of solvent demand and the level of development of the national economy. The dynamics of state payments to the population significantly exceeded the capabilities of the real sector of the economy. Stimulating the purchasing power of the population and at the same time limiting accumulation, the tax redistribution of national income increased the demand in the market of consumer goods and services, which acted as one of the most important factors in exacerbating the contradictions between accumulation and savings