Journal of Applied Economic Research
ISSN 2712-7435
Historical Aspects of the Effective Use of tax Instruments for the Industrialization of the Economy of the USSR
Sodnomova, S.K., Leontyeva Yu.V., Mayburov I.A., Kireenko A.P.
Abstract
The article reveals the specifics of the construction of a turnover tax from the standpoint of identifying its role and significance in the impressive successes of the Soviet economy in the period from 1926 to 1940. The originality of the use of tax instruments of that period was that they ensured the achievement of several effects. The turnover tax and profit deductions were used as a channel for transferring funds from the village to the city and this led to the migration of the rural population to the city, where there was a great need for working hands. These payments were also used as an element in the creation of a cost-effective economy, which contributed to cost reduction due to the growth of labor productivity. To do this, specific conditions were created in the planned economy: the functioning of the economy as a single national-economic complex aimed at accelerating the development of the production of means of production in kind, setting firmly fixed prices only for retail goods, transferring sales tax regardless of the results of operations, orientation of specific enterprises to reduce costs through the introduction of new inventions, rationalization proposals, strict control with State parties for the implementation of targets. Fixed prices were set only for retail goods. The turnover tax was transferred to the budget regardless of the performance of enterprises. Reducing the cost of production was ensured by introducing new inventions, rationalization proposals, and strict state control over the implementation of planned targets. The aim of the article is to study the experience of applying turnover tax and profit deductions and their role in the success of the industrialization of the Soviet economy in the 1930. The hypothesis of the study is a turnover tax and deductions from profits in the conditions of regulated prices and a planned economy led to the formation in the USSR of a model of a cost-effective economy that ensured a constant decrease in production costs, accelerated urbanization of the population and unprecedented growth of heavy industry.
Keywords
the turnover tax; profit deductions; industrialization; planned economy; cost-effective economy.
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About Authors
Sodnomova Svetlana Konstantinovna – Candidate of Economic Sciences, Associate Professor, Accounting and Taxation Department, Baikal State University, Irkutsk, Russia (664003, Irkutsk, Lenin street, 11); e - mail: sodnomovask@mail.ru.
Leontyeva Yulia Vladimirovna – Candidate of Economic Sciences, Associate Professor, Finance and Tax Management Department, Ural Federal University named after the first President of Russia B.N. Yeltsin, Ekaterinburg, Russia (620002, Ekaterin-burg, Mira street, 19); e-mail: uv.leonteva@mail.ru.
Mayburov Igor Anatolevich – Doctor of Economic Sciences, Professor, Head of Finance and Tax Management Department, Ural Federal University named after the first President of Russia B.N. Yeltsin, Ekaterinburg, Russia (620002, Ekaterinburg, Mira street, 19); e-mail: mayburov.home@gmail.com.
Kireenko Anna Pavlovna – Doctor of Economic Sciences, Professor, Chief Re-searcher, Department of Financial and Tax Management, Ural Federal University named after the first President of Russia B.N. Yeltsin, Ekaterinburg, Russia (620002, Ekaterinburg, Mira street, 19); e-mail: sw.tpk.rt@mail.ru.
For citation
Sodnomova S.K., Leontyeva Yu.V., Mayburov I.A., Kireenko A.P. Histirical Aspects of the Effective Use of Tax Instruments for the Industrialization of the Economy of the USSR. Bulletin of Ural Federal University. Series Economics and Management, 2019, Vol. 18, No. 2, 291-312. DOI: 10.15826/vestnik.2019.18.2.015
Article info
Received February 20, 2019; Accepted April 10, 2019
DOI: http://dx.doi.org/10.15826/vestnik.2019.18.2.015
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