Free Economy Institute
Tax cuts in expenses

As you know, at present the expenditure side of the budget is based on the inclusion of expenditure taxes in budget expenditures. Therefore, an effective way to reduce budget expenditures is to eliminate the state’s self-assessment of taxes.

An assessment was made of the size of government spending in the annulment of taxes, which today are part of these costs. In expenses liquidated ERUs, personal income tax, military duty, VAT. 

Calculations showed that due to tax cuts it is possible to achieve a reduction in government spending by almost 5% of GDP.