Russia’s wealthy elite could face higher income tax as authorities propose a new, progressive system

MOSCOW (AP) — Russia’s wealthy elite could face higher income taxes. That’s according to a proposal from the country’s finance ministry on Tuesday. The proposal involves a progressive tax on personal incomes, a change of course from the current flat-rate tax that was credited with bringing order and improving tax collections after it was introduced in 2001. It envisages imposing a 13% tax for incomes of up to 2.4 million rubles, or $27,000 a year. For incomes over that amount, a steadily higher tax rates would apply. The maximum tax would be 22% for annual incomes exceeding 50 million rubles, about $555,000.