Strapped for cash, Moscow is implementing a tax reform that targets high earners and corporations. The income tax for high earners will increase from 15 to 22 percent, while the corporate tax rate will go up from 20 to 25 percent. The reform aims to eliminate VAT exemptions but faces criticism for its impact on the middle class and the super-rich.
Journalist Sergei Yezhov argues that the reform unfairly burdens middle-class earners, while allowing oligarchs to dodge higher taxes. The tax structure favors company owners over employees, creating a divide in the tax burden. Political scientist Ilia Matveev questions the sustainability of the war economy, as the population and businesses bear the financial weight of ongoing conflicts.
The Russian tax reform raises concerns about economic balance and social justice in a time of financial strain and military expansion. Will the changes lead to a fair redistribution of wealth, or will they exacerbate existing inequalities?