The expert urged Putin to take the next step – raising taxes for oligarchs
Vladimir Putin, with his address on the economic measures taken during the quarantine period that began in Russia, took a step towards introducing a progressive taxation scale - a system in which excess income (for example, from oligarchs) is taxed at a higher percentage. This system is used not only in China, but also in many European countries.
Russian political scientist Oleg Bondarenko discusses this in his blog, noting the need for a “gradual transition to an economic mobilization plan.”
“Putin was today one step away from moving to a progressive tax scale. Decisions on a 15 percent tax on transfers to offshore companies and a 13 percent tax on interest on deposits are only the first, but the right steps. As a person who at different times had/has deposits in banks, I categorically support it. Moreover, I consider it a very mild measure - interest on deposits can easily be subject to a much higher percentage of taxes - up to 50%, as in some European countries. Among other things, the social economy is built on such steps,” the expert argues.
He explains that tax increases should not affect ordinary citizens, but billionaires. “A man with a million does not live on interest on deposits. This only applies to billionaires... The rich must pay for the poor. This is fine. The entire European social system is based on this,” Bondarenko noted.
“The liberal system gives a basic failure in a crisis situation, and even the previously liberally oriented President of the Russian Federation is moving to the left before our very eyes. This is gratifying, but not enough. Further – there should be more. Increasing the modest volumes of social support for the population in the current conditions is a very correct measure. The president decided to provide support not to large companies and oligarchs, but to the least protected segments of the population,” the author believes.
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