But Russia can go its own way here too
The system of progressive taxation, to which, judging by statements from the Kremlin and the State Duma, it is planned to transfer Russians in the near future, is widely used in the world and by and large is a hallmark of developed economies. However, in its quest for complete sovereignty, Russia seems to intend to take a “different path” here too. It is already clear that the authorities are not considering introducing a tax-free minimum income, which exists in almost all European countries, as well as in the USA and China. To the tax scale — There are still too many questions. And the system of deductions, designed to reduce the fiscal burden on Russians, currently looks rather modest.
A quick analysis of the tax legislation of foreign countries allows us to come to the conclusion that developing countries mainly use a flat scale and relatively low rates. Whereas developed economies most often introduce a progressive tax, the upper limit of which can reach 50% or higher. Progressive income taxation was first introduced in Great Britain at the end of the 18th century. In the 19th century, it was used in some European countries, in particular during the Napoleonic wars. By the beginning of the 20th century, the progressive scale had already become commonplace: the United States introduced it in 1913, and Tsarist Russia was going to introduce it in 1917 (following the Prussian model), but these plans were prevented first by the February and then the October revolutions. However, when the Bolsheviks finally issued a fiscal decree in 1922, the income tax also turned out to be progressive. rates were revised several times during the existence of the Soviet Union. For example, in the 1990s, citizens had to give the state from 12% to 30%, until a decision was made in 2001 on a single personal income tax of 13%.
Currently, about 25 countries use a progressive scale, most of which use a multi-stage model, when the state’s percentage increases step by step with the growth of taxable income. In other words: if a person receives from $20 to $30, he pays 5%, from $30 to $40 – 10%, from $40 to $50 -20% and so on. But with one important condition — the increased rate is not imposed on the entire income as a whole, but only on that part that exceeds the limit of the previous stage. In our example, if a person earned $35, then from $30 he will pay 5%, and 10% will be taken only from the remaining $5.
The number of steps may be small — for example, in Poland there are only two. And reach 18, as in Luxembourg. In many countries, a multi-stage scale implies the presence of a minimum personal income tax-free income (in our case, this is everything that does not exceed $20). In addition, there are nuances related to marital status, the presence of children, and obligations for other payments. Also, the final tax amount is significantly affected by all kinds of deductions — Moreover, in some countries they are given for such exotic things as commuting to work by bicycle, helping farmers and donating to charity.
Germany has the most complex taxation system. There, the entire population is divided into 6 tax classes, for which different levels of collection and a list of required social services are established. First class — these are single people without children, the second — singles with children, third — married couples with one worker, the fourth — married couples where both work, the fifth — married couples where one of the workers has an income above average, the sixth — where both partners earn decent money. The tax-free minimum — 11.6 thousand euros in 2024 — applies to all classes except the fifth and sixth. Everything above the minimum is taxed at rates from 14% to 42%, the specific value depends on many nuances (according to statistics, the vast majority of Germans give about 30% of their income to the state). Income over 66,760 euros (6.7 million rubles) per year is subject to a flat tax of 42%, those who have more than 277,826 euros (22.8 million rubles) pay 45%. In addition, in Germany there is a so-called “solidarity tax” and other contributions (for example, the responsibility to make insurance payments rests partly with the employee himself). On average, before taxes, Germans in 2023 earned 4,100 euros (410 thousand rubles) per month, the minimum wage in the country — 1600 euros (160 thousand rubles). Average earnings are growing by about 6-7% per year.
The highest taxes in Europe are in the Scandinavian countries. Let's take Denmark as an example. There, income tax consists of state (progressive from 12 to 15%) and municipal (fixed), the rates of which vary from municipality to municipality (average 24%). Before income tax is deducted, all Danish income from employment or self-employment is subject to a “labor market” contribution. at the rate of 8%. Also, the Danes independently make contributions to the pension fund (4%) and pay a fixed social contribution, which depends on the amount of earnings and various circumstances. The total maximum rate must not exceed 52%.
Denmark has a non-taxable income tax (except for 8% on the labor market) of at least 50 thousand crowns (667 thousand rubles). In addition, at the end of the year, citizens can receive back part of the amount paid as compensation for travel expenses to work and the cost of maintaining a spouse if she (he) does not work for some reason. Municipal income tax also applies a complex and extensive system of tax deductions. The Danes, as a rule, have half in their hands (and the rich — less than half) of the amount paid as income taxes and other contributions, but this money is quite enough for a comfortable comfortable life (the average salary in Denmark is about 40 thousand crowns or 542 thousand rubles per month). In addition, it is obvious to anyone who has been to Denmark that taxes are spent on the right things: the country has ideal roads, practically free healthcare, which is at a very high level, free education, high benefits for the disabled, developed social security, comfortable homes for the elderly etc.
In the United States, citizens also pay several types of taxes — federal, state and local. The total amount depends on income, city of residence, age and marital status. We will not go into local taxes, but as for the federal personal income tax, it is levied on a progressive scale consisting of seven steps. In these seven steps, the rate rises from 10% (which a single American with an income of up to $11.6 thousand will pay) to 37% (for those earning $609 thousand or more). However, as already noted, the maximum rate will not apply to the entire half a million, but to the amount that exceeds the upper limit of the previous step.
The United States also has a non-taxable minimum federal tax, the amount of which varies depending on the age and marital status of the taxpayer (for single people in 2024, about $14 thousand). In addition, for many categories — military, citizens paying a mortgage, working students, those who care for incapacitated relatives, etc. — tax deductions have been established. The average monthly salary in the US before taxes in 2023 was about $4.7 thousand (about 56.5 thousand per year), it is growing by about 6% per year. Along with health insurance, Americans, as a rule, give about a quarter of their income to the state.
China did not reinvent the wheel: the Chinese authorities have long been using a seven-step progressive tax scale, only with its own gradations. The income of poor Chinese (those who earn less than 36 thousand yuan or 460 thousand rubles per year) is taxed at a rate of 3%, while local nouveau riche (with incomes of more than 960 thousand yuan or 12.2 million rubles) are given to the state &mdash ; 45%. The Chinese, who earn 1 million in rubles, pay less than 10%.
The minimum non-taxable threshold is small — 5 thousand yuan (63 thousand rubles). They are deducted before calculating income taxes. However, China has a powerful system of tax deductions, which are available to almost every resident. Benefits can be obtained for expenses on children's education, continuous self-education, expensive operations, renting housing, paying off mortgage loans, caring for incapacitated relatives, etc. All of them are applied independently of each other and are added together. If deductions are equal to or greater than earnings, no tax is actually paid.
Little is known yet about what progressive taxation in Russia will look like. However, leaked information allows us to conclude that there will be no minimum non-taxable income (for example, in the amount of the minimum wage or at least half of it). This, as experts say, threatens too large losses — more than 1.2 trillion rubles. — for the budget, while the goal of the reform is to increase revenues by a multiple.
The gradation of rates and the methodology for their application also still raises more questions than answers. According to Anatoly Aksakov, Chairman of the State Duma Committee on the Financial Market, the 15% rate “can be applied starting from an annual income of 1 million rubles.” or 83.3 thousand rubles. per month. “And if a person earns more than 5 million rubles, then 20%.” However, from these words it is not clear exactly what amount will be subject to increased tax — the entire 1 million rubles, or only that which exceeds the previous level (and what, by the way, it will be).
As for tax deductions, in addition to the existing deductions for education (in total in 2024 you can return no more than 33.8 thousand rubles) and medical expenses (no more than 15.6 thousand rubles), the authorities promise to increase tax deductions for parents of two or more children. However, the benefit will not be provided all the time, but until income from the beginning of the year exceeds 450 thousand rubles. For those receiving an average salary (RUB 73.7 thousand) this will happen within 6 months.