Russia today has a flat income tax of 10 percent on everybody. Why should I be afraid of a country that practices Reaganomics far more than America does. If Vlad wants to conquer my state and impose a low flat tax, I won’t fight in the resistance
It’s actually 13% but close enough. And NO ESTATE TAX.
And a 20% corporate tax v. 40% in US. And a debt to GDP ratio of 18% v. 101% for US.
that may be the dumbest thing I’ve ever read on FR.
Regarding Russia’s tax of 10%, I have learned from Russians on another thread that that is only part of the story. The employers have to pay a lot of things for the employee, things that taxes would pay. So it is a different way to tax. Like our employers pay only half of social security, there I think they pay all. I don’t remember the particulars, but the outcome of the explanation was that all things included, the taxation is closer to the same as ours. What the employer pays the state for the employee he does not pay the employee in wages.
It is much better for them that it used to be, of course. It’s just that the one point of them paying 10 percent is a partial picture of their taxation system. FYI
Russian income tax is 13% and payroll tax is 40% for annual gross salaries over $7,651.
Someone with net receipts of $8,700 annually would have paid $5300 in taxes making the effective tax rate 38%.
http://www.rfhwb.de/Docs/0%20index%20page/brief%20guide%20to%20russian%20taxes%202014.pdf