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

Russia and the Lack of Tax Collection The stintingal crisis in Russia has become an all important(predicate) topic within the international political and economic world. The virtual separate of the Russian economy has had a domino effect in name of decreased economic stability in a number of countries, particularly countries in Latin America. Now the paradox Russia, the United States, and basically all(prenominal) major country in the world need to solve is the problem of how exactly to get the Russian economy going again to observe not only the world economy from collapsing, but also to defy 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 gross needed by most countries in order to successfully trifle a state, almost does not exist in Russia. I end to present in this paper that tax collecting and lack thence is not the only problem causing this crisis, but it is a wicked one. It is mainly caused by corruption and the lack of the government to successfully bastinado 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 social occasion of this paper, I am going to attempt to explain a piffling of what I understand to be important changes in the economy that effectuate tax collection). Early Russian economy was characterized by strong political give 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, direct 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 prominent turn from this characterization, and has attempted to become an economy characterized by more production control by private sector enterprises with less government conflict (Alexashenko, 3-6). This gives private companies and investors more control over their monetary gains and losses and makes it easier for the teeming 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.