Skip to comments.Russia may ask rich to help foot bill for Crimea with 'solidarity tax'
Posted on 07/22/2014 9:27:18 PM PDT by Tailgunner Joe
Russia could ask its richest citizens to help foot the bill for the annexation of Crimea by paying a "solidarity tax" proposed by a group of lawmakers.
Deputies from the State Duma lower house of parliament, which is dominated by backers of President Vladimir Putin, have drawn up a draft law that would increase income tax for people earning more than more than 1 million roubles ($28,700) a month.
It would affect less than 2 percent of the working population but the amounts could be huge for some individuals because the daft proposes they pay up to 30 percent of their earnings compared to the current flat rate of 13 percent.
"The main goal is to support regional budgets and that means also the budget of Russia's new territories," Andrei Krutov, the deputy leading the planned legislation, told Reuters.
His reference to the "new territories" made clear that a key intention was to help the government pay for Crimea's absorption into Russia.
The Black Sea peninsula was annexed in March, an action seen by most Russians as righting what they considered a historical wrong by late Soviet leader Nikita Khrushchev who gifted Crimea to Ukraine in 1954, long before the Soviet Union collapsed.
The need to help support Crimea's economy and its 2.3 million population has put a new strain on Russia's federal budget at a time when the country is sliding towards recession.
Some state employees say they have already been asked to donate a day's pay to help Crimea - a demand some have balked at.
The Finance Ministry has also suggested personal income tax may have to be increased by 1-2 percent to help cover the costs and the government had already heard calls for Russia to introduce a progressive taxation mechanism.
(Excerpt) Read more at reuters.com ...
Taken from Yomomma’s “Share the wealth?”
That ought to go for BIG
Putin taking lessons from Obama?
No; Putin was always like this. If his KGB past and all the nationalization of the press, oil companies and other industries weren’t clues, this is merely another one.
Oops. Meant to say “all or part of what’s left of Ukraine” since Crimea was already stolen from Ukraine.
“Ask”? Comrade, can you spare ruble for Evil Empire?
He strong-armed the money for Sochi from the oligarchs.
I don’t see this being any different. When everything you own was given to you by the state, the state owns you.
“He strong-armed the money for Sochi from the oligarchs.
I dont see this being any different. When everything you own was given to you by the state, the state owns you.”
I should also have said:
A lot of them who give it up now, will get repaid in spades from the contracts for Crimean infrastructure, especially the Kerch Bridge Project, and the off-shore leases.
A couple, like Yelena Baturina, the woman that owns a bunch of 5 star European hotels, have already started projects, like her new Crimean resort that will likely be a Grand Hyatt.
It can’t be underestimated how much Crimea deteriorated under Ukraine in the last 20 years.
Education and health care are the losers.
Putin is not working to increase the wealth of the Russian population, just to protect his own.
Crimeas biggest source income is tourism. Since the takeover no one is going there and the economy is really hurting