The State Duma proposed to increase personal income tax to 30% on annual incomes over 10 million rubles

State Duma deputies from the Communist Party faction, headed by party leader Gennady Zyuganov, submitted a bill to the lower house of parliament, which proposes to establish personal income tax at the level of 30% on annual incomes over 10 million rubles. Document published in the Duma electronic database.

“Keeping the current personal income tax rates, [необходимо] introduce a new rate of 30% for incomes over 10 million rubles. for the tax period. At the same time, the state budget will receive not 250 billion rubles. at a time, and annually by 650 billion rubles. According to the Henley Partners agency, there were 101,000 dollar millionaires in Russia in 2022, if the proposed law is passed, the cost of millionaires will be 6.4 million rubles. – a tiny amount! ”, – the explanatory note says.

An increase in the rate on excess profits is necessary to make up for the budget deficit, which by the end of this year may grow from the planned 2.9 to 5 trillion rubles. with the liquid part of the NWF about 6 trillion rubles. The authors of the bill argue that the government’s initiative on a one-time fee from large businesses did not meet with a proper response from entrepreneurs.

The government did not support the bill. The government concluded that an increase in the personal income tax rate to 30% could lead to wages going into the shadows and a reduction in personal income tax revenues to the budget, which is contrary to the goals of the bill.

According to the current legislation, two personal income tax rates are provided for taxpayers – 13% for annual income below 5 million rubles. and 15% above this amount. The latest rate applies from January 1, 2021. During this period, budget revenues increased by 87 billion rubles, according to the financial and economic justification for the bill.