Skip to comments.Europe Vs Russia On Taxes (Interesting Excerpt From Putin Interview With German Television)
Posted on 04/05/2013 9:41:51 PM PDT by goldstategop
VLADIMIR PUTIN: Of course, not. On the contrary I am even glad, to some extent, because the events have shown how risky and insecure investments in Western financial institutions can be. By the way, our tax regime in that context is also more favourable than yours. The income tax rate for natural persons in Russia is only 13 percent. What about Germany? How much do you pay?
JÖRG SCHÖNENBORN: It would be great if we paid only 13 percent. Of course, it would be great. Fight against tax increases is a hot topic during the election campaign.
VLADIMIR PUTIN: So, fight for tax cuts.
(Excerpt) Read more at eng.kremlin.ru ...
Naturally, Russia in a favorable tax position. Should Germany lower its tax burden?
I think President Putin has a good point and I agree with him.
Now if he denationalized all of his gas and oil infrastructure, I might think he was worth listening to. But he doesn’t want to do that, never mind give up political power.
Russia has considerable Western investment and cooperation in its energy market.
The country has a healthy budget surplus and is investing for the future on things that are necessary.
Of course with Putin’s upcoming visit to Germany, naturally there are more opportunities for mutual trade and Germany is already the largest partner in the North Stream Gas Pipeline delivering Russian gas to consumers in Germany.
If Europe moved from austerity to pro-growth policies, it would have a brighter future.
Did you ever think you’d see a day when the President of Russia understood the benefits of low taxation better than the President of America?
Keep thinking that they are in any way like us and you may be in for a surprise.
Rosneft and Gazprom are still state companies. Doesn’t matter about the foreign investment; there is no foreign ownership there. Would you trust Exxon or Mobil if the federal government owned them?
With a top rate of 35%, we are better off than Europe but by not much.
We cannot offer a flat tax like Russia has to encourage people to come live and invest here and create good-paying jobs.
13% is why Gerard Depardieu left France to settle in Russia because he didn’t want to pay his country’s confiscatory taxes on his income.
I believe in people keeping their wealth and using it to benefit others and they can do that much better than the government can do it.
>>Now if he denationalized all of his gas and oil infrastructure, I might think he was worth listening to. But he doesnt want to do that, never mind give up political power.<<
Last time I’ve check all major Russian energy companies are stock companies. Buy it if you want.
Nationalized oil and gas puts them in the company of nearly every other nation on earth. The USA is a rarity in that individuals can own mineral rights to oil and gas on their land.
Even in England, all oil, gas, coal, gold, etc belong to the crown. Nobody may extract without a government grant. The right to mine does not exist.
Most complaining about Russian oil and gas policy is actually the EU stamping their feet, that they were unable to solidify control of it, and use it they way Europe has always used colonial regions.
The EU is very bitter that they must simply be a customer of a foreign exporter. It was more fun to fantasize about owning it all.
You’re never going to be able to buy a majority. And state ownership is still state ownership.
There are strategic industries in which the government has a controlling interest.
Many European countries pursue the same “strategic champions” policy as Russia.
There is foreign investment in those companies; they just cannot exceed a majority of the shares.
That’s true for certain industries that are state-owned in Russia.
All other parts of the Russian market, there are no limits on foreign ownership.
Its far from ideal but its a lot better than during the Soviet days when the state owned everything in the country.
Britain privatized their mining business in 1994. Neither BP nor UK Coal are arms of the royal family or Westminster government.
Then you’ll really love when they start only accepting payment in a gold backed trade currency, rather than in Euros or Dollar funny money which can have it’s value stolen away through inflation.
There’s nothing wrong about looking after your own national interests first. And there is nothing automatically holy about the engine of your economy being owned by foreigners hostile to your national interests either.
“Youre never going to be able to buy a majority. And state ownership is still state ownership.”
Airbus is basically a state funded company, competing with Boeing. I guess it’s ok when the EU subsidizes entire industries. And this also brings to mind “too big to fail”.
And i seem to recall something about GM, Tesla, Solyndra, etc.
It’s very thin ice to be upset about state ownership of an industry.
The extractive businesses, may be private now. But who owns every scrap of minerals in the ground by law in England? The Crown, thats who.
Well, we can, but we'll have to dispose of all the Commies in Congress first to get the tax rates lowered.
Down is up, left is right....
No, the allodial title does not extend that far; that is a right-of-conquest concept anyhow. Unless by extension one is going to also claim that all lands in the USA are ultimately owned by the federal government (which the concept of “public lands” does entail).
That simple six word reply may one day be writ large in our history books.
I guess now our low tax supporters will all want to move to Russia. ;-)
Congress is small matter. It's far more difficult to deal with 49% of US families and 47.8 million individuals who depend on social security disbursements to live. Their food is paid for by your taxes.
Some of those recipients are genuinely unable to work due to illness and should be cared for by the society. But the majority is formed by people whose entire occupations are wiped out; by those who are older and cannot find a job; and by those who are career welfare recipients.
In essence, we are all passengers, locked in a vehicle that speeds down a mountain road without brakes or steering. The government gave up on trying to fix things, even if we believe that at some point they wanted to. It was an exciting ride since the US dollar was detached from gold and was printed left and right. But we are running out of the road ahead.
“With a top rate of 35%, we are better off than Europe but not by much.”
Top rate for federal income tax in 2013 is 39.6%. Add social security and state income taxes and it is easy to be over 50%.
We’ll never get a flat tax.
We have a graduated er progressive income tax system.
I don’t agree with Putin on everything but if you want smaller government - meaning a government that lets you keep most of your paycheck, fight for it!
A flat tax of 20% would be an improvement over the 50% effective tax rate we have now.
The laws of nature ensure that a society which operates on such an equation, is doomed to failure. The above isn't sustainable, no matter how altruistic some are with other people's money.
To paraphrase Lev Bronstein, you may not be interested in Putin - but Putin is interested in you.
I think that, as the EU collapses, two possibilities emerge - one, the failed EU states come together under German suzerainty, or two, the Germans and the Russians come together in some sort of condominium.
We are not like them because our government wishes us to experience the above.
The average Russians I know remind me of what this country was like before we became a worker's paradise.
I am even glad, to some extent, because the events have shown how risky and insecure investments in Western financial institutions can be. By the way... The income tax rate for natural persons in Russia is only 13 percent.Luckily for taxpayers, only the government is allowed to own industry under The Not-So-Great Helmsman.
Yet they’re heading straight for it again.
Far from it. Read what Putin has said about taxes. Russia, even under Putin, is becoming more open and free. But yet Putin is still willing to stand firm against Islam. He has repeatedly refused all encouragement to raise taxes.
You can have all the democfracy you want but in the end your only as free as your tax burden. By that measure I am about 50% free. I spend half of my life in forced service to my countrymen.
Russia becoming more open and free? With the clamps down on free speech that are already on the record? With the police being a bit too free with the truncheon? With Putin (and his KGB background) getting his third term as president? With the government buying controlling shares in what are supposed to be private companies? Should we get into the assassinations too . . . ?
Obama’s open deference to Medvedev and Putin should have told one all one needs to know about Russia, never mind all the rest.
>>>Russia becoming more open and free? With the clamps down on free speech that are already on the record? With the police being a bit too free with the truncheon? With Putin (and his KGB background) getting his third term as president? With the government buying controlling shares in what are supposed to be private companies? Should we get into the assassinations too . . . ?<<<
In fact KGB and Police are pretty much more restrained in Russia under Putin comparing to Yeltsin’s regime.
There is a rule of law of some kind for investors who aren’t about to exploit corruption for their interest.
Ask Ford, IKEA etc. They have exposed any nasty approach from Russian politicians and unions and nobody dare to touch them ever since.
Both makes billions in Russia now.
Oh please. This sounds exactly like the same kind of propaganda used to get people to invest in Red China. And for the record, Red China is the one country in the world that Russia is getting closer and closer to. Putin is going further away from the West (I don’t mean the EU); and I will never be convinced of any of the pro-Putin propaganda on here until he becomes openly friendly to Israel and the USA (which he is neither) and stops investing in Iran particularly.
The last comparison in the Western media to a past Russian leader that was used for Putin was to Tsar Nicholas I. Seems to fit, what with the efforts to build his “Eurasian Union” (the name derived from “European Union”, of course) out of the former Soviet Union (which the EU itself is patterned on). This is a man who does not think of World War II as the twentieth century’s greatest geopolitical catastrophe; instead, in his view, that was the fall of the USSR.
>>>until he becomes openly friendly to Israel and the USA (which he is neither) and stops investing in Iran particularly.<<<
C’mon. If not for the Russian ‘help’ Iran could have a bomb years ago.
Russia is de-facto pretty friendly to Israel, thus it can’t expressed officially because it may hurt Russian business with Arabs.
About a quarter of Israel’s population is of Russian descent, even more for IDF. These people have relatives in Russia, including those influential in business and politics. Flights to Israel and back are also the most crowded regular flights in any Russian international airport. Both nations allows either side’s nationals visa-free.
Sorry, but I’ll believe the rhetoric out of the Kremlin over your unsourced sales pitch.