The role of the discretionary and non-discretionary instruments of tax regulation in the stabilizing cyclical fluctuations of the economic development

Abstract

Тhe article is devoted to defining the role of discretionary and non-discretionary instruments of tax regulation in stabilizing cyclical fluctuations in economic development. We consider a general characterization of the mechanism of influence on economic processes and tools discretionary non-discretionary tax regulatio. Advantages and disadvantages of discretionary and non-discretionary instruments of tax regulation to counter the cyclical fluctuations of economic development are revealed. The factors that affect the efficiency of discretionary and non-discretionary tools character by classification tools discretionary regulation of local, systemic and complex nature according to the stage of the cycle in which they should be applied are considered. It will determine the adequate tools of tax adjustment for the current period of economic development through the specification of the specific character of the stage of the economic cycle. It has been proved that the effectiveness of discretionary regulation depends on the prudent, validity and timeliness of administrative decisions that are taken by officials. It is concluded that tax regulations to effectively mitigate cyclical fluctuations should combine both measures of discretionary nature and use of stabilizers built into the tax system.