Estimating Tax Potential of the Subjects of the Russian Federation

The State currently faces the problem of finding additional sources of income that can be used for basic purposes. In the Russian Federation tax revenues form a significant part of the budget. However, many regions of Russia have a volume of potential tax revenues, which can be allocated to the respective budgets without creating additional burden on taxpayers. In practice, the tax potential of regions is not fully used. The aim of this work is to assess the tax potential of Russian regions. The practical part of the study is based on the assessment of the tax potential of the regions of the Volga Federal District. In addition to this analysis, such empirical methods as measurement and modeling will be used to create models demonstrating the tax potential of some Russian regions. The results obtained are a useful contribution to tax policy decisions and the effective use of the tax potential of each constituent entity of the Russian Federation.