hit tracker
Thursday, March 28, 2024
HomeLatest News“We need to take more money from the rich”: how much Russia...

“We need to take more money from the rich”: how much Russia will gain if taxes on high wages are increased

Date: March 28, 2024 Time: 14:22:50

At the World Economic Forum in Davos, experts proposed an urgent tax increase for the rich. Should we do the same?

Photo: Roman IGNATIEV

Think about it: just 1% of wallets own almost half of all the wealth on the planet! It’s fair?

This is not a fragment of the correspondence between Engels and Kautsky, but the result of a recent study by the Oxford company Oxfam. And especially the level of inequality began to go off scale in recent years. Billionaires have doubled and even tripled their fortunes, while the real incomes of the majority have declined. At the recent World Economic Forum in Davos, experts proposed urgently raising taxes on the rich. Should we do the same?

EFFICIENCY VS JUSTICE

For many years, the income of the Russian budget was higher than the expenses. Petrodollars flowed like a stream. We launch large construction projects, set aside excess reserves…

Now, due to sanctions, money is tight. This year, expenses will exceed income by 2-3 trillion rubles. The stash accumulated over the past few years will last for a couple of years. Therefore, you need to look for new sources of income. And our income tax is not the highest (see “Help” KP “). So maybe it’s time to raise taxes on the very rich?

– This is one of the most controversial and complex issues in the theory and practice of modern taxation. Theses are defended, monographs are published, politicians curse, but “things are still there.” No one can find the golden mean. The ratio of flat and progressive rates is the eternal problem of the ratio of efficiency and fairness, – says Arkady Bryzgalin, head of the Tax and Financial Law group of companies.

Help KP.

Photo: Dmitry POLUKHIN

IN THE BUDGET – HALF OF THE INCOME?

– Progressive taxation is a step in the right direction. We need to take more money from the rich, then go after the poorest and pay them. It is clear that there is a moral threat here: some hide their income in order not to pay high taxes, others pretend to be beggars in order to receive benefits. But the tax system is not carved in stone. There are many ways to improve it, – says Alexey Markov, Doctor of Economics, author of the book “Hulinomics”.

In his opinion, it is better to raise taxes on the rich and at the same time reduce VAT. Especially for those industries that bring the greatest benefits to the economy, for example, transport and construction. For comparison, in China, VAT in these areas is 10 and 9 percent, respectively. In Russia – 20%.

But if you raise taxes on high incomes, how exactly? The head of the State Duma Committee on the Financial Market, Anatoly Aksakov, proposed in 2021 that the maximum rate of personal income tax for the richest be 35%. Some of his colleagues advocate an even more radical path.

– The progressive scale should not affect the middle class. Therefore, it is reasonable to go to the next stage of the progression for income of more than 30 million rubles a year at a rate of 25%, and for income of more than 60 million rubles a year to make a rate of 50%. , – says Oksana Dmitrieva, Doctor of Economics, State Duma deputy from the Party of Growth.

But most likely, such a strong increase will not lead to anything good.

– According to many studies, the level of income taxes of up to 35% is psychologically acceptable. Above: The percentage of those who have gone to the shadows is greatly increased. Many countries are guided by it when shaping their tax system, explains Vadim Kovrigin, an associate professor at the Russian University of Economics. Plekhanov.

So, under the current conditions, it is desirable to seek a compromise.

– Given the current psychological and economic turmoil, sudden jumps should be avoided. To begin with, you can stop at a rate of 25% for income above 30 million rubles a year and evaluate the results, suggests Oksana Dmitrieva.

Other experts suggest an even smoother boost scale.

– If there is absolutely nowhere to go, it is better to introduce a “symbolic progression”. That is, for higher incomes, the tax will be higher, but not by much. For example, 18 or 20%. By the way, today’s 15% is just the implementation of the idea of ​​​​”symbolic progression”. It seems to be there, but it is by no means a burden, Arkady Bryzgalin believes.

If the progression is practically painless for the taxpayer, no one will risk their reputation and find themselves with a fine. This version is based on the fact that no one complained in particular about the rise in personal income tax to 15%, which occurred two years ago. Those who receive more than 5 million rubles have not become much poorer. Meanwhile, the budget has been decently replenished – by more than 100 billion rubles a year. The next progression (for example, up to the top 18-20% earners) could bring in an additional $300-400 billion a year. Of course, the problem of the budget deficit cannot be solved in this way. But it will still get smaller.

WHO SHOULD BE SUPPOSED MORE?

Very rich people receive not only income, but also expensive property. In most countries, it is heavily taxed. For example, real estate. We already have a progression there, but quite strange. The tax depends on the value of a particular object and not on the total size of a person’s fortune.

– It is fairer to proceed from the total value of the real estate owned by the taxpayer. Such an added tax can generate an additional 137 billion rubles a year, says Andrey Korytin, a researcher at the Tax Policy Research Laboratory of the Russian Academy of National Economy and Public Administration.

At the same time, according to some experts, if you take from the rich, you should leave to the poor. For example, you can eliminate income tax for the poor. This will leave more than 150 billion rubles in the wallets of the poorest families.

WHY INEQUALITY IS BAD

In a market economy, inequality is considered a blessing. For example, people strive to live better, so they study, do business. In general, they do everything possible. However, balance is important in everything. In those countries where inequality is too strong, life is not very comfortable. And the rich themselves.

– In countries where inequality is lower, infant mortality and street crime are lower, life expectancy is higher and, most importantly, the average level of happiness is remarkably higher. And if your neighbors feel good, you will feel good too, dear friends. If only because there are no homeless people and demons dissatisfied with life, sums up Alexey Markov.

By the way, if our oligarchs had not turned their heads towards super-profits, many of them would not have thought to order superyachts from European shipyards and buy luxurious mansions in London and Monaco. And now it turns out that it was not us who collected the tax from our super-rich, but the West.

Only numbers.

Photo: Dmitry POLUKHIN

EXPOSITION

not so low

Tax systems in different countries can vary greatly. Therefore, it is not always correct to compare only income tax. For example, in Russia and Belarus, employers also pay insurance premiums (30 and 35%). Together with them, the tax burden on income is 45-50%. Therefore, when our officials proudly say that we have the lowest taxes in the world, they are obviously false.

LISTEN ALSO

Nikita Krichevsky: Next year will be much more difficult than 2022 (more)

* This website provides news content gathered from various internet sources. It is crucial to understand that we are not responsible for the accuracy, completeness, or reliability of the information presented Read More

Puck Henry
Puck Henry
Puck Henry is an editor for ePrimefeed covering all types of news.
RELATED ARTICLES

Most Popular

Recent Comments