Taxation in a crisis society: a financial response to modern challenges

The study is devoted to the study of the scientific and practical problem of refracting the crisis trend in the development of modern society, the promising solution of which is a financial response in the form of tax regulation. The study is aimed at determining the role of taxation in the conditions of a modern crisis society. The study is carried out by drawing up simple linear regression equations that reflect the patterns of changes in indicators of crisis phenomena in modern society as the tax burden (taxes on income, profits and capital gains) changes, as estimated by the World Bank in 2022, based on an international sample of 2020 countries. As a result, it was concluded that taxation plays an important role in the conditions of a modern crisis society, having a significant impact on a wide range of crisis phenomena in modern society. Economic and mathematical patterns have been drawn up, indicating that as the tax burden grows, economic growth slows down, international migration flows increase, income inequality decreases, the country’s position in the context of the COVID-19 pandemic worsens, exports of goods and services increase, the added value of average and high-tech industries, and greenhouse gas emissions are reduced. The results obtained develop the Theory of Economic Crises through the systematization of key crises in modern society and clarification of the role of taxation in economic crisis management. The theoretical significance of the results obtained is due to the fact that they revealed the previously unknown role of the tax burden in the functioning and development of a crisis society. The practical significance of the author’s conclusions is that they make it possible to increase the efficiency of economic crisis management through a more effective response to economic crises through taxation. It is substantiated that reducing the tax burden in a crisis society is dangerous, as it can aggravate the manifestation of crises in society. The most preferable financial response to the challenges of our time involves increasing the tax burden, which will mitigate the manifestation of crises in society.