Barabash L. The effectiveness of the mechanism of personal income taxation

The thesis is devoted to the study of the set of theoretical and methodological principles and practical recommendations to improve the effectiveness of functioning of the personal income taxation in Ukraine. During the study it was found out that the effectiveness of the existing mechanism of personal income taxation is quite low not only in the whole country but also in the regions. As a result, the decrease in the growth rate and the share of personal income tax in the Consolidated Budget of Ukraine was shown. The key influence on the amount of personal income tax revenue to the budget is made with the number of economically active population, the average wages, the average minimum wages and the tax rate. The current distribution mechanism of accumulated amount of personal income tax between the budgets of different levels led to the reducing of the share of local budgets own funds and the increasing of transfers in recent years.