The article examines the history and reforms of income tax in Russia over the past 100 years. It focuses on the last two stages of the tax system, analyzing the 2001 reform's impact. The shift to a proportional tax model did not significantly affect tax revenue or reduce hidden wages. While the reform did not decrease tax exemptions, it did improve tax efficiency and reduce administrative costs. The authors suggest that reverting to progressive tax rates may not reduce income inequality. Maintaining the current tax model and reviewing deductions could be a pragmatic approach for the future.