"On Thursday, he told leaders of Russia's parliamentary factions that higher taxes on luxury goods or stock dividends could be "reasonable" during wartime. "The important thing here is not to overdo it," Putin added. Putin said such moves align with wartime precedent abroad. "In the United States, I don't want to politicize this, during the Vietnam War and the Korean War, that's exactly what they did. They raised taxes specifically on people with high incomes," he said."
"During the Vietnam War, Congress passed the Revenue and Expenditure Control Act of 1968, which imposed a temporary 10% income tax surcharge on both individuals and corporations. In the Korean War era, the US reinstated an excess-profits tax, raised excise taxes, and increased both personal and corporate income taxes. Moscow has increased income tax rates on top earners this year. As Forbes Russia reported in July, Russia's richest individuals took home record dividends in 2024, making them an obvious target for new levies."
President Vladimir Putin is seeking higher levies on the wealthy, including taxes on luxury goods and stock dividends, to help fund the war in Ukraine amid falling energy revenues. He framed such measures as wartime precedents, citing US tax increases during the Vietnam and Korean wars. Russia has raised income-tax rates for top earners, and the country's richest received record dividends in 2024, making them targets for new levies. Moscow's fiscal position is under pressure from an EU sanctions package that replaced the fixed oil price cap with a flexible mechanism and from weak oil prices. The Kremlin plans to revive a budget rule to mitigate low oil-price effects.
Read at Business Insider
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