Scientific Views On The Essence And Content Of Local Potential

Potential as a category is commonly addressed within two levels – attained (real) and advanced (perspective). Resources and capacity that today are available to economic entities highlight a level attained. They are a real component of economic potential. Economic potential is not only a stock of available resources, but also a current or potential ability to make effective use of resources available. In order to identify the period when tax potential was first calculated, it is necessary to trace the development of inter-governmental relations as such. Different economists provide different definitions of the term “tax potential”. Differences in definitions are due to the fact that different authors have different goals and objectives, thereby dealing with different aspects of the category. Tax potential plays a crucial role in improving inter-governmental relations, as well as in determining the procedure for granting transfers. A considerable value of this category is that authorities have an incentive to increase their own revenue base. Thus, there are some institutional views on the development of tax policy including fiscal, functionally stabilizing, investment. The functionally stabilizing view is currently essential for the Russian tax policy, whereas regional tax policies pay special attention to the features of regional tax legislation, tax planning in the region, as well as the system of tax administration. Therefore, with a prevailing type of tax policy to be applied in a particular subject at a certain moment, one can identify trends in the implementation of tax potential.