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The “mainstream” of our days is personalized advertisement. Modern technologies let sellers collect and process huge amounts of information about their target audience. Thanks to the big data technologies, sellers know their consumers’ demographic characteristics, lines of conduct, theirattitude to specific labels and so on. It contributes to the sellers’ ability to make the best and the most actual offer for each client and increase their brand productivity.

Another trend in DM are Chat-Bots. Chat-Bots are special programs that can talk to a user - machine intellect. Those programs are useful helpers in many known apps nowadays.The examples of the most successful using of chat-bots are Alisa from Yandex and Siri from Apple.

Of course, it’s only a shallow opening to the world of Digital Marketing, when there’s much more to an eye. For instance, AR technologies. It lets us “touch” the product and look at it closer. Even now, while we’re all here, popular video content grows exponentially. It makes a client's research easier, faster and more comfortable. Actually, it all started about 10 years ago in the US, with an app called Vine. But in the last few years short videos have become more and more popular. Therefore, this makes Instagram, Tik-Tok and some other nets with short entertaining videos the best choice for posting Ads. One of the most successful ways of advertising is using influencers. Statistics based, people trust the media faces much faster and easier. Moreover, well-known people attract more attention. So it is clear that content makers try to promote their products using celebrities. The well known MTS advertisement with Dmitriy Nagiev and Anastasya Ivleeva as “the faces” of the brand.

References

1.Open source intelligence [Electronic resource].- URL acess mode: https://altcraft.com/ru/blog/trendy-didzhital-marketinga-v-2022-godu (Accessed on 04.10.2022)

2.Vaganova O.I., Kutepova L.I., Aleshugina E.A.// Open education technology// Baltic Humanitarian Journal. 2020.Vol. 9.No. 3 (32). pp. 51-54.

3.Babkin A.V., Burkaltseva D.D., Kosten D.G., Vorobyev Yu.N. Formation of the digital economy in Russia: essence, features, technical normalization, development problems // Scientific and technical bulletin of SPbGPU. Economic sciences. 2017. Vol. 10, No. 3. pp. 9-25

4.Borkova, A. A. Analysis of the digital economy of the Russian Federation in 2018-2020 / A. A. Borkova. // Young scientist. 2020. № 20 (310)

5.Levchenko T. A., Levchenko D. M. Analysis of the level and prospects of development of the digital economy: Russian and global trends // Bulletin of the Astrakhan State Technical University. Series: Economics. 2020. №4

6.Sadovaya E.A. Digital economy and a new paradigm of labor // World economy and international relations. 2018 vol.62 .No.12. pp.35-45

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M.S.Strepetova, E.V. Smirnova, A.N.Tynnikova

Nizhny Novgorod State University of Lobachevsky,

Nizhny Novgorod, Russia

Nizhny Novgorod State Pedagogical University of K. Minin,

Nizhny Novgorod, Russia

WHY ARE TAXES AN IMPORTANT ISSUE?

The tax is a gratuitous, obligatory payment of individual and entity to the state. Taxes are one of the main part of the budget in our country, that’s why the state cannot exist without them. Tax is an amount of money that a government requires people to pay according to their income, the value of their property, etc., and that is used to pay for the things done by the government.There are a lot of taxes in the tax system. Some of them will discussed in detail in this article.

VAT is a value added tax. It means that this tax is taxed by difference between sales proceeds and purchase costs or production costs for goods. Valueadded tax (VAT) is a consumption tax on goods and services that is levied at each stage of the supply chain where value is added, from initial production to the point of sale. The meaning of VAT is that tax is counted from the whole product’s price and then is deducted the supplier tax. So, you should pay only value added tax. The tax rate may be 0%, 10%, 20%: 0% is applied for export goods;10% is applied for social goods, such as bread, milk, eggs, sugar, salt, groats, meat, baby food, medical devices and many others; 20% is applied for other goods. Income tax is direct tax. Its amount depends on final financial organization’s results. The tax is accrued on profit, which the organization gets, that is the difference between income and expenses. Profit is an object of taxation. This tax is usually a tax that the state imposes. Because of exemptions, deductions, and credits, most individuals do not pay taxes on all of their income. Taxable income is your adjusted gross income (AGI) minus any itemized deductions or your standard deduction. The tax rate has been 20% since 2009. The tax credited 3% to the federal budget and 17% to the budget of subjects of the Russian Federation.

Personal income tax (PIT) is one of the direct taxes in the Russian Federation. This tax is charged on all income in a year.It is a direct tax levied on personal income including wages and salaries, director's fees, dividends, royalties and rental income, amongst others. PIT is paid by resident and nonresident individuals once they engage in taxable or income-generating activities in the country in question. There are 2 main tax rates – 13% and 15% which are actual since the first of January 2021: 13% is applied for income, which does not

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exceed 5 million rubles; 15% is applied for income, exceeding 5 million rubles. Main payers are tax agents, such as large and medium enterprises, budget institutions.

Property tax is a direct tax. It is is one that the taxpayer pays directly to the government. These taxes cannot be shifted to others. A homeowner pays personal property taxes directly to the government. It is property tax for organizations or individuals. Property tax includes 3 taxes: transport tax; land tax; personal property tax. The taxation’s objects are: vehicles (cars, motorbikes, planes, helicopters, yachts, boats, ships and others); lands and real estate objects (house, flat, room, country house, garage, share in common property and others). Also, property taxes are paid at the place of the residence (transport tax) or at the location of taxation’s object (land tax, personal property tax) by individual.

Excise taxes are indirect taxes. They are included in price of products, goods and then are paid by consumer. Goods with excise tax are alcohols and some products with it; alcoholic drinks; tobacco and some products with it, also liquid nicotine, e-Sigs; cars and motorbikes; petrol, engine oils, aviation kerosene, crude oil; natural gas (at international treaties of the Russian Federation). Mineral Extraction Tax (MET) is a direct federal tax which is charged from subsoil users. There are 2 types of tax rate: ad valorem rates are applied to a price of mined mineral (counts in percents); specific rates are applied to an amount of mined mineral (counts in rubles per ton).

Why do we need taxes? In spite of the fact that taxes are irrevocable, they can be returned as the state collects some amount in treasury, and then gives it back to economics as government expediture and service provision, provision of education, healthcare, law enforcement, defense etc. It means that taxes are indirect payment of the citizens for the services provided by the government. Russian citizens can get free health care, new roads, schools, kindergarten, also build social buildings, for example, orphanage, state pay unemployment benefit, targeted assistance, finance housing programs for young families, maternal capital and many others because of tax fees. These services are called public goods. These public goods can help to implement redistribution of wealth between economic agents. Having examined all the reasons for paying taxes we can draw a conclusion that in the Russian Federation taxes are varied and play an important and significant role in tax system in our country.

References

1. Decree of the President of Russia "On the Strategy for the development of the Information Society in the Russian Federation for 2017-2030" No. 203 dated 09.05.2017

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2.Babkin A.V., Burkaltseva D.D., Kosten D.G., Vorobyev Yu.N. Formation of the digital economy in Russia: essence, features, technical normalization, development problems // Scientific and technical bulletin of SPbGPU. Economic sciences. 2017. Vol. 10, No. 3. pp. 9-25

3.Sadovaya E.A. Digital economy and a new paradigm of labor // Worldeconomy and international relations. 2018 vol.62 .No.12. pp.35-45

4.Open source intelligence [Electronic resource].- URL acess mode: https://cyberleninka.ru/article/n/sovremennye-tendentsii-razvitiya-tsifrovo gomarketinga/viewer (Accessed on 10.10.2022).

K.S. Pankina, E.V. Smirnova

Nizhny Novgorod State University of Lobachevsky, Nizhny Novgorod, Russia

WHY IS RUSSIA EXPERIENCING INFLATION?

Nowadays, the problem of increasing inflationary processes is quite acute for the vast number of countries in the world. The authours can note that there are almost no countries which have never faced challenges of countering inflationary processes. So, the relevance of this paper lies in the fact that the problem of inflation has been actively studied by many leading economists. This is also due to the fact that the state of the economy of a particular country can be estimated by considering the inflation rate level. In addition,.the issue of combating inflation is one of the leading ones in the economic policy of the states. The inflationary environment has a fairly strong impact on the life of ordinary citizens, because the unevenly rising prices inevitably reduce the purchasing power of the consumers. This is the single biggest cost of inflation. It can also distort purchasing power over the time for the payers and the recipients of fixed interest rates. Due to recent events in the world, an unstable economic situation has caused record inflation rates. The object of the research is the process of inflation, its causes and consequences.The subject of the study are the methods of dealing with inflationary processes.The phenomenon of inflation occured at the same time as the coinage. It should be noted that there are many factors which cause inflation but it was decided to characterize inflation as a rise in prices, which can be translated as the decline of purchasing power over time. The rate at which purchasing power drops can be reflected in the average price increase of a basket of selected goods and services over some period of time [Fig.1]. Moreover, there is a process called deflation which is the reverse process of inflation, characterized by a decrease in the overall price level. There are a lot of causes of inflation, for example, the state budget deficit, the issuance

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of unsecured loans, inflation expectations, tax hikes, creation of a monopoly, the price advances for imported and exported goods.

One of the most important reasons for high inflation rates is the raw materials orientation of the Russian economy. The Russian Federation has a huge territory and resourcing. In addition, a significant share of exports is occupied by primary goods, which indicates the unsustainability of the economy. All this leads to a strong dependence of the state budget on world prices for raw materials. A number of experts also highlight the entry of the Russian Federation into the World Trade Organization. Russia joined this international organization with an economy not fully restored after the crisis of 2008-2009. Change in the oil price and other energy sources are also singled out as the cause of inflation in Russia. This dependence is quite easy to explain, because the price of these types of goods is embedded in the cost of almost every product or service. According to the Central Bank, fast price gouging of gasoline facilitates to the same growth of inflation rates. Oil and gas production taxes have also been steadily increasing, and therefore companies are forced to raise prices for their products in order not to lose profits. Anti-inflationary line is generally aimed at controlling the level of inflation in the country through a variety of methods of monetary and fiscal policies. As for Russia, the authors highlight that contractionary monetary policy is now a popular method of controlling the inflation rate. The goal of a contractionary policy is to reduce the money supply within an economy by increasing interest rates. Thus, the Central Bank of the Russian Federation regulates the refinancing rate, that is the percent it provides lending to the commercial banks. In addition, such instruments as open market securities and changes in the rate of mandatory reserves are also used. Besides, the government is seeking to create favorable conditions for attracting investment, including stopping the outflow of capital from the country, measures are being taken to reduce public debt.

Figure1. Inflation

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However, despite the strong tendency of the government, it isn`t possible to get the inflation under control. Inflation rates over the last few years are still quite high and differ from forecasts. This suggests that there are provisions in Russia's anti-inflationary policy that are ineffective in the current situation. The instruments of anti-inflationary policy affect only monetary reasons, when the extensive measures must be taken to combat this phenomenon sucessfully. Moreover, Russia belongs to the groups of countries with economics in transition. Their markets have have not been fully formed yet. Another reason for the insufficient effectiveness of the policy may be the fact that the Central Bank controls and regulates the issuance of only central money. In the current situation, it would be much more profitable to start creating favorable conditions for the initiation and development of strong competition.

The Central Bank of Russia has the recources to improve the existing policy by developing appropriate measures to increase gross domestic product. So, for example, it can update the funds of enterprises, modernize them, pay attention to the banking sector, with the help of lowering interest rates, enterprises will be able to find affordable financing.

In conclusion, it should mentioned that the problem of inflation can be classified as a global one. However, since the end of 2021, global inflation has been rising, as seen in many of the world's regions. The economists have identified several possible causes for inflation from rising wages to increased aggregate demand to an increase in the supply of money. In 2022, inflation rates around the world rose to the highest levels since the early 1980s. Therefore, in order to successfully resolve the problem, it is necessary to focus on restoring the balance, pay attention to the methods of regulating the transition economy and strive for economic growth.

References

1.Malkina, M. Y. Economic theory. Part II. Macroeconomics: A textbook. – Nizhny Novgorod: Publishing House of UNN, 2009. – 257 p.

2.Tarasevich, L.S. Macroeconomics / L. S. Tarasevich, P. I. Grebennikov, A. I. Leussky. – M.: Yurayt, 2011. – 686 p.

3.Official website of the Federal State Statistics Service. [Electronic resource]. – URL access mode: https://rosstat.gov.ru (Accessed on 10.10.2022)

4.Official website of the Central Bank of the Russian Federation. [Electronic resource] – URL acess mode: http://www.cbr.ru (Accessed on 10.10.2022)

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A.I. Sirazetdinova, E.V. Smirnova

Nizhny Novgorod State University of Lobachevsky, Nizhny Novgorod, Russia

MAJOR PROBLEMS OF FISCAL POLICY

Fiscal policy, regardless of the economic performances, the technological level, the conditions of its development, continues to have a vast number of unresolved, but quite strong problems that cannot be solved once and for all. There is a possibility of their emergence besides unforeseen situations, negative external shock or simply deterioration of the economic situation. They may also be associated with a slowdown in the pace of urgent institutional and structural reforms, as well as slackening of financial discipline, which at short notice cause serious fiscal issues.

Fiscal policy in our country deeply depends on the raw materials and financial markets and changes in the oil market. The problem dates back in the Soviet times. In addition, declining oil prices in the 1980s has been considered as one of the most significant reasons for the collapse of the USSR. Experts believe that it has long been necessary to wean the country off of its dependence on oil. The authors mention that we have already been the vitnesses how the state of oil prices greatly affect the economy. So, as a result of the collapse in oil prices and other factors in 2020, the state budget revenues decreased by 6.4% in comparable prices. Therefore, the country's financial base should now be restructured and aimed at eliminating dependence on the global economic situation, developing the domestic market and expanding its own tax base. It is worth noting that Russia has begun actively work on restoring the balance. The state has started a course for the downturn in oil and gas revenues in the overall revenue structure.

The Russian tax system is not always characterized by rationality, its lack of detail regarding the principles that must govern causes many problems. For example, the problem of an uneven tax burden that differs in areas and does not take into account the level of profitability of these areas. This is the reason for the low efficiency of the Russian taxation system. It is worth noting that according to official data, the level of the tax burden differs from the real tax pressure on taxpayers. The reason lies in the presence of factors affecting the level of the tax burden, particulary, in the volume of the informal economy. In different countries it varies. In Russia, the volume of shadow activity remains quite large and amounts up to about 20% of GDP. The fact is that the shadow economy participants do not pay taxes at all or do it partially. People who break the law are very hard to detect, so the state has to fight against the shadow economy. The point is that in this case, the tax burden falls on legal taxpayers. It

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turns out that they take the rap for the shadow sector, which leads to a significant increase in the tax burden on law-abiding persons.

Another factor affecting the tax burden is quasi–taxes. Today, economic entities of our country pay not only taxes, but also quasi-taxes, which are similar to the tax payments, have a lot in common with them, but are not equivalent to them. They include insurance premiums to state extra-budgetary funds, patent fees, payment for environmental pollution, etc. The tax burden is gradually shifting to non-tax payments, which leads to an increase in non-tax revenues. In this case, the amount of taxes stagnates, or even decreases. As a result, tax revenues to the state budget have been reduced, since the quasi-taxes take away part of the income of the population, and the tax burden itself is growing significantly. The authors believe that the current uneveness of tax policy can be explained by businesses are active support and some individual industries, while the other subjects of taxation are forced to suffer from an excessive tax burden. The uneventssof tax burden, in turn, can generate other negative consequences. Social tension is growing in the society, the level of citizens' distrust of the authorities is increasing, the standard of living of the population is deteriorating, property stratification prevails in society, etc. Therefore, appropriate tax reforms should be carried out to improve the state of the tax system.

Also we should mantion the shortcomings of the tax policy. The proportional scale of taxation is the most characteristic for our country. But a proportional tax makes the poor poorer and the rich richer because of the difference in the amount of income available after taxes. The principle of tax fairness was drafted for the first time by Adam Smith. It meant that the taxes should be proportional to the economic opportunities of taxpayers. Indeed, the introduction of a progressive scale is more rational, since it will not increase social stratification in society and will help replenish the state treasury. Obviously, the progressive scale also has certain subtleties and nuances. However, this is one way to solve the problem.

Another problem of the tax system is filling the budget with indirect taxation, which generates an inflationary effect. Indirect taxes are much more practical and profitable for the state, so they have become a priority form of collecting tax payments. Indirect taxes are a premium to the price. Thus, an increase in their volume in the state budget leads to an increase in the overall price level in the country. This is followed by a drop in real incomes of the population and a decrease in aggregate demand. Indirect taxes are considered the most biased in relation to consumers and their incomes: a higher percentage is charged from low incomes, and a lower percentage is charged from high incomes. To solve the problem it would be essential to give preference to direct taxes that are levied from a specific base – transport, property, income.

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To draw a conclusion, it should mentioned that the problem of the tax system, which is not so often paid attention to, but which definitely affects the state of the budget, is the shortfall in tax revenues due to the provision of a large number of inefficient tax benefits. Dishonest economic subjects often cheet the state in every possible way in order to keep a preferential tax rate. For example, they give out salaries in cash, hide income, postpone the official employment of the employees. Tax incentives should be provided to small and medium-sized businesses in order to stimulate economic activity. To solve this problem, it is necessary to analyze the certain tax benefits on an ongoing basis, determining the degree of their necessity and effectiveness. Thus, fiscal policy has lots of problems, and each of them requires a certain approach.

References

1.On the impact of oil prices on the economy [Electronic resource]. – URL acess mode: https://vc.ru/finance/115237-neft-o-vliyanii-cen-na-neft-na- ekonomiku (Access mode 10.10.2022)

2.Kharkov, K.S., Levichev, A.N., Boyko, G.A. Characteristics of the budget and tax system of Russia, negatively affecting its effectiveness / K.S. Kharkov, A.N. Levichev, G.A. Boyko //International Journal of Humanities and Natural Sciences. -2019. -№ 11-1 (38). - P. 123-125.

3.The Ministry of Finance of the Russian Federation [Electronic resource]. - URL acess mode:https://minfin.gov.ru (Access mode 10.10.2022)

4.Malkina, M.Y. Economic theory. Part II. Macroeconomics. Nizhny Novgorod: Publishing House of UNN, 2009. – 257 p.

E.V. Smirnova, A.N.Tynnikova, K.S. Saveleva

Nizhny Novgorod State University of Lobachevsky,

Nizhny Novgorod, Russia

RUSSIA'S HUMAN RESOURCES MARKET

The Russia's human resources market is an integral part of the structure of the market economy, functioning in it along with other markets. The labor market is a system of public relations about hiring and offering labor or buying and selling it. The price of labor is wages. In the labor market, one party (employees) is represented by people looking for a suitable job, and the other party (buyers) is represented by employers or their representatives who are ready to offer this job. The labor market is realized through state, commercial employment services (labor exchanges), as well as directly through personnel

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services of enterprises and institutions or between an employee and an employer. The result of satisfying the mutual interests of the employee and the employer is an employment contract. Based on this definition, two main functions of the labor market can be distinguished: social and economic. The social function is directly related to the citizens of the country, as it is to ensure the normal level of income and well-being of people, with the optimal use of their productive abilities. The latter means the use of production abilities and labor in general within the framework of the current labor legislation regulating relations in the labor market in a certain state. The economic function of the labor market is directly related to the economic system of the state, since it consists in the rational involvement, distribution and use of labor, the state of which largely determines the rate of economic growth of this system.

Obviously, fulfilling these functions, today the labor market plays the role of one of the key foundations of the economic system of the state. At the same time, the labor market, being the object of state regulation, acquires the character of the economic and legal category. It is a special set of economic and legal relations related to ensuring effective employment of citizens, meeting the demand and supply for labor. The subjects of these relations are: unemployed citizens, employers and the state who have their own common and special interests in the market.Summing up the analysis of official data, we can note the normal unemployment rate in Russia 4.1% as of March 2022 and the effectiveness of state policy to ensure employment. The optimal indicator of unemployment in developed countries is considered a mark of 4-5%.However, it should be borne in mind that the officially registered unemployment rate may differ from the real level for several reasons. Firstly, statistics are based on the analysis of the selective part of citizens, and not the entire population of the country. Secondly, not all unemployed officially register their position on the labor exchange. The labor market is governed by the labor supply and demand law, which affects wages. The law of supply and demand for labor reflects the disparity between the number of available jobs and the composition of workers coming to the labor market. The labor market does not spare the weak and incapable. But at the same time, it encourages highly skilled labor and promotes a strong link between each individual's contribution and the results specifically obtained. The serious consequences of unemployment justify the need for state intervention in the field of labor, which contributes to the modification of labor relations, regulates them, and limits the freedom of market forces. The state is pursuing a targeted policy of regulating the labor market. A powerful legal system has been created that regulates labor relations. The main goals of state regulation of the labor market are: ensuring full employment and creating a flexible labor market capable of maintaining manageability and stability.

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