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WATCH: Putin Explains How and Why He Will Tax the Rich to Pay for Coronavirus Problems

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Interesting contrast - team Trump rushed to give staggering handouts to the billionaires who own and run the US's monopoly, rip-off economy. Putin takes the opposite approach - make the rich pay.


Finally, there are two more measures I would like to suggest. Allow me to elaborate.

First, all interest and dividend income that flows from Russia and is transferred abroad into offshore jurisdictions must be taxed properly.

Today, two-thirds of these funds, and basically we are talking here about incomes of specific individuals,

are taxed at the rate of only 2 percent, thanks to so-called optimization strategies of all kinds.

At the same time, people with modest salaries pay an income tax of 13 percent. This is unfair, to say the least.

For this reason, I suggest that those expatriating their income as dividends to foreign accounts should pay a 15 percent tax on these dividends.

Of course, we will need to amend Russia’s double taxation treaties with some countries.

I ask the Government to work this out. If our foreign partners do not accept our proposal, Russia will unilaterally withdraw from these treaties.

We will begin with countries that attract substantial resources from Russia, which is a very sensitive issue for our country.

Second, many countries levy income tax on interest earned by individuals from their bank deposits and investments in securities,

while Russia does not tax this income at all.

I propose that people with over 1 million rubles in bank deposits and debt securities pay a 13 percent tax on this income.

I would like to reiterate that this is not about taxing the deposits themselves but only applying income tax to the interest individuals earn from these investments.

I would like to emphasise that only about one percent of deposit holders will be affected by this initiative.

At the same time, Russian banks will still offer attractive deposits with some of the highest returns in the world.

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