Putin offered to send to poor regions of the taxes of the rich

The Russian government is finalizing the “basic principles of state policy of regional development until 2025”. The document will be presented to the President. According to “Kommersant”, according to the project of the government in the next three years to reduce the gap in living standards between regions it is proposed to introduce a redistribution of the income taxes in favor of low-income areas.

Now the rate of this tax is 20%, the Federal budget is only 2 percentage points. The rest goes to the regions. These contributions, together with tax on income of individuals form the basis of their budgets. According to the Ministry of Finance for seven months in 2016, the entities received in the form of income tax 1,451 trillion rubles.

The government’s proposal is that regional 18% centralization in the Federal budget one percentage point. Thus, the government plans to 117 billion rubles. 84 billion rubles will be spent on additional subsidies to poor regions., another 20 billion will give the most dynamically developing regions in the form of grants for the high growth rate of the regional tax potential. Another 13 billion roubles will remain to the government as compensation for lost costs: the Cabinet proposes to give regional authorities the right to leave in their budgets the full amount of gains tax. The government believes that this measure should encourage regional authorities to stimulate the economy and earn more.

This plan was developed following the meeting with Deputy Prime Minister Dmitry Kozak on September 16, says “Kommersant”

In addition to the redistribution of taxes between regions, the Ministry of Finance offers a 30% cut spending on subsidies and other interbudgetary transfers to the regions. However, according to “Kommersant”, the government is ready to support poor regions, restrukturisasi their debt at the expense of the put now cost loans.

Thus, according to the publication, in Moscow, the idea of redistribution of taxes is not satisfied. According to the Federal Treasury, from 1,451 trillion all dues of income tax in the first seven months in 2016, more than a quarter or 368 billion rubles to the capital.

According to the study the Analytical credit rating agencies (ACRA), published in early September, in the first half of 2016 from the richest 20% of the regions income rose 1.7%, while the poorest 20 percent — virtually unchanged (growth by only 0.3%). The income inequality between rich and poor regions “re-aggravated”, and since 2012 the gap has increased by 10%, said analysts.