MECHANISMS FOR SUPPORTING LOW-INCOME POPULATIONS THROUGH TAX POLICY

Abstract

This article examines the possibilities of using tax mechanisms to increase household incomes and reduce poverty. The study highlights the role of the tax system in the social state model and its importance in income redistribution from both theoretical and practical perspectives. According to the results of an econometric analysis conducted on the basis of the World Bank survey data, it was determined that illness and healthcare-related expenditures negatively affect the financial stability of the population. As a result of the research, scientific proposals were developed regarding VAT refunds on medical expenses for low-income populations, reducing the social tax rate for employers who provide employment for low-income individuals, and exempting material assistance allocated by sponsorship and charitable organizations from taxation.