Bloomberg: Porsches, peacocks and taxing luxury in Russia and Ukraine
Post-Soviet voters are jealous folk who like the idea of soaking the rich. So when the leaders of Russia and Ukraine were looking for a crowd pleaser in an election year, they both made the obvious choice: Introduce a luxury tax.
Now, both look likely to botch it.
Russian president-elect Vladimir Putin's proposal emerged amid the mass protests of the past winter, when he was seeking a way to win the allegiance of poorer Russians as a counterbalance to middle-class discontent. As he put it in a campaign speech, Russia's luxury tax would "be a publicly recognized form of payment for sacrificing investment in growth in favor of overconsumption and vanity."
Read more here.
Now, both look likely to botch it.
Russian president-elect Vladimir Putin's proposal emerged amid the mass protests of the past winter, when he was seeking a way to win the allegiance of poorer Russians as a counterbalance to middle-class discontent. As he put it in a campaign speech, Russia's luxury tax would "be a publicly recognized form of payment for sacrificing investment in growth in favor of overconsumption and vanity."
Read more here.