ough capital for the industrial constriction adjustment. Third, administrate financial orders, reform tax system and improve the investment environment. What hamper business in Russia most of all are taxes. If entrepreneurs paid all the taxes they owed, they would pay more than they earned. Therefore the shadow economy amounts to about 25 percent of GDP. Tax evasion is one of the main reasonsalong with control of mediators over resource and output flows, schemes designed for managers personal benefit, and the high price of moneybehind the wide use of money surrogates (for example, promissory notesveksel) and barter. Over the years, there has been much talk in Russia about reducing the tax burden, but only Putins government has tackled the issue. It intends to improve the general rules of the game for taxation and lower taxes on producers and ordinary citizens. Tax officials plan to eliminate all preferences and seek to establish equal conditions for all. This approach signals a radical shift in the governments economic philosophy. The government seems to understand the significance of improving the economic environment. Legal experts are working on protecting minority stockholders interests, introducing transparent accounting techniques, and implementing other reform measures. But carrying out some important reforms requires consistent policy rather than isolated initiatives. Putin requires that the banking system strictly control the exclusive use of national loans in order to stop the abuse of the budget and preferment loans. In order to relieve the burden of enterprises, Putin continues the policies of cutting tax types, lowering tax rates while widening tax sources. He is going to cut the tax sorts from 35 to 5 only, and lower the income tax rate from 45% to 30%. Fourth, decrease the gap between the rich and the poor; improve citizens living standard. Nowadays, the rate of the income of richest 10% citizens and...
