11 July 2024

Russian Tax Overhaul: Citizens to Bear the Burden of War Losses

A recent news report indicated that Russia's war in Ukraine will increasingly impact the wallets of its citizens. This is because President Vladimir Putin has been forced to overhaul taxes to finance his country's army, which has suffered significant material losses.

In total, Russian citizens will have to pay an additional 27 million euros in new taxes. This burden will be distributed according to people's wealth, with the wealthiest bearing a greater relative share. In other words, the previous flat tax system will change to a progressive one.

It remains to be seen how Russians will react to the reform. It would, of course, be desirable for them to reject it and launch widespread rebellion against the pointless war in Ukraine and the man who started it, Vladimir Putin.

This possibility is supported by the fact that tax increases have often sparked popular uprisings. For example, this was the case in Finland at the end of the 16th century and this year in Kenya, where the government has been increasingly pressured.

On the other hand, Putin's administration has taken a page from Stalin's book and keeps the country's citizens in fear and strict obedience. Therefore, any possible dissatisfaction among the people might remain at the level of grumbling—just as the lamentation of the families of the over half a million Russian casualties in Ukraine has.

Nevertheless, Ukrainians should not lose hope. There is always a limit to what people will endure from their leaders. Thus, it is possible that the newly decided tax increases are the straw that breaks the camel's back.

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