Posted on 11/12/2015 10:27:45 PM PST by goldstategop
MOSCOW, November 13. /TASS/. Russia’s government has refused to support a bill on re-introducing a progressive income tax drafted by A Just Russia Party, the Izvestia newspaper reported on Friday.
Russia’s Economic Development Ministry believes that switching to this system may lead to resuming the use of the so-called shady schemes of avoiding to pay the tax, including by lowering the real salary figures, according to the newspaper.
"Now there is stability in collecting this tax what is a rather important argument in favor of preserving the current income tax scale," a ministry representative, Elena Lashkina, told the newspaper.
Russia’s 13% tax on personal incomes is one of the world’s lowest. Before the flat tax took effect in 2001, Russia had a progressive income tax ranging from 12 to 35%
The problem with Russia isn’t its economy. The problem is that Russia is filled with Russians.
Oh, I said that wrong. The problem with Russia isn’t its TAXES. It’s that it’s filled with Russians :). Hence why their economy sucks.
Ok, I got it. Some kid named Pavel beat the snot out of you in 3rd grade. Right?? Nothing else makes sense.
Not only 13% flat. But taken out by the employer, no filing unless you need to demonstrate the once in a lifetime home purchase deduction. About the only deduction they have.
The average person there doesn’t have to file.
Imagine the capital that would flood the USA if we had such a rate. Combine our society with such attractive taxes and we would be the envy of the planet with the wealth we would attract.
Of course, this is precisely the reason our leaders will not do this. They are busy leveling us down to world standard.
tsk tsk...;)
It’s worth noting that when this passed the tax rate was only 10%. Just saying...
Good idea..
Amazing! Russia eventually got the capitalists, and we got the Communists! /s;)
It’s hard to find a larger contingent of deadbeats outside of Russia. What a bunch of losers . . . everyone is trying to emigrate.
Great post... Interesting. Makes me wonder why the flat tax there isn’t working.. Or maybe it is. I admit I know very little about Russia.
That is just income tax. Russian payroll tax is 30% on top of a gross salary and 40% for annual wages over ~$10k.
http://www.rfhwb.de/Docs/0%20index%20page/brief%20guide%20to%20russian%20taxes%202014.pdf
So I am bored and that is why I do the calculation for you. Say you are in Russia and your annual gross salary is over $7,651 - the cutoff to 40% payroll tax. For my example I say $10,000 annual salary. Your net receipts will be $8,700 and the amount of taxes will be $5300 making the effective tax rate 38%.
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