Russia and the Lack of Tax Collection :: International Politics Economics USSR Essays

Russia and the Lack of Tax Collection The scotch crisis in Russia has become an crucial topic within the international political and scotch world. The virtual recrudesce of the Russian economy has had a domino effect in equipment casualty of decreased economic stability in a number of countries, in particular countries in Latin America. Now the worry Russia, the United States, and basically both major country in the world need to solve is the problem of how exactly to get the Russian economy going again to encumber not only the world economy from collapsing, but also to cargo deck Russia from ceasing to exist. According to Daniel Treisman, in his article Russias Taxing Problem, Russias unfitness to collect taxes, amongst other things, is quickly becoming the greatest threat to its economic and political stability, (Treisman, 1998). Tax collecting, a viable source of tax income needed by most countries in order to successfully weather a state, almost does not exist in Russ ia. I platform to present in this paper that tax collecting and lack therefrom is not the only problem causing this crisis, but it is a dependable one. It is mainly caused by corruption and the lack of the government to successfully outdo this corruption to help save their country from economic and political disaster. The economic system in Russia has undergone some significant changes in the last decade. (For the routine of this paper, I am going to attempt to explain a diminutive of what I understand to be important changes in the economy that complete tax collection). Early Russian economy was characterized by strong political obligate over the activities of enterprises. In other words, the state sought to control all aspects of society, including the economy and allocation of monies to businesses and private citizens and the fixing of prices to promote economic stability. This, however, guide to the increase of black markets where prices were often inflated and also le d to wasteful practices of resource use (Alexashenko, 2-3). The economy of Russia has taken a spectacular turn from this characterization, and has attempted to become an economy characterized by more outturn control by private sector enterprises with less government meshing (Alexashenko, 3-6). This gives private companies and investors more control over their monetary gains and losses and makes it easier for the fertile to become richer and the poor to become poorer. It also hurts smaller businesses because they do not have the influence or control of the bigger enterprises.