Inequality and Individual Income Taxation in Russia
Russians at the bottom of income distribution believe inequality is high and rising.[i]
The level of inequality in Russia is on a par with that of Turkey and Latin American countries. According to official statistics, in 2014 the after-tax income of the most affluent tenth exceed by 16 times the income of the worse-off tenth of Russians.[ii]
Oxfam and the Global Call to Action against Poverty in Russia carried out an analysis of income distribution and tax structure in Russia and came to the following conclusions:
- Russians are getting wealthier but income inequality grows;
- Russia has a flat tax on personal income, hence taxation is regressive;
- Middle- and low-income people pay too much and are hit severely by the income tax, while the richest people pay less and take advantage of more tax deductions.