The Ways of Reducing Income Differentiation and Poverty Reduction Techniques

The issues and basic prerequisites of income differentiation process and manifestations of poverty in Ukraine have been considered. The main factors influencing the formation of income have been analyzed. The analysis of statistics on receipts and expenditures in rural and urban areas, households with and without of the first quarter of 2014 and the first quarter of 2015 was conducted in our research. As a result, it was detected the negative trends of differentiation of income and impoverishing nation in 2015, due to the failed economic policies, unstable and low income, weak rural development etc. To improve the situation and solve these problems the changes in legislation system should be forced in application including tax policy, focusing on the developing and maintaining the structure of officials in rural areas, increasing earnings and reducing the percentage of the population receiving informal income, providing a supporting policy to the middle class.