Communist Party secretary suggested a way to fight poverty

2021-03-28

Band-aid solution

The secretary of the Central Committee of the Communist Party of the Russian Federation (CPRF), Doctor of Political Sciences Sergei Obukhov said that pensions could be increased if an annual tax of 3% was introduced on 40 thousand wealthy families in Russia. According to his calculations, this will give 1.5-2 trillion rubles to the country’s budget annually, which will help eliminate the problem of poverty. According to Obukhov, 300 billion rubles a year are enough to treat seriously ill children.

According to Obukhov, during the crisis, the fortune of 100 Russian oligarchs from the Forbes list grew by seven trillion rubles, four of which have already gone abroad.

Without claiming to be perfect in economic calculations, one can estimate that an increase in tax from 3% to 6% will already give 3-4 trillion rubles, which makes it possible to return the retirement age to the pre-reform (2018) figures. But that’s a whole point that the real power in Russia belongs yet to these 40 thousand families, who set taxes and fees.

Of course, the introduction of a progressive personal income tax, a luxury tax, and some other fees are necessary, it will be possible to raise pensions, scholarships, and other social benefits with their help. But this will not make it possible to finally eliminate poverty, since a significant part of the Russian poor has a job receiving slave wages. Therefore, it is necessary to raise workers’ wages. In addition, given the multiple challenges that Russia is now facing it becomes clear that progressive income tax cannot be the only solution needed. It is necessary for all the surplus value made by the working people to be invested in the real social needs, and this requires a change in the social and economic system as a whole.

Although necessary and useful, a progressive income tax will not solve all problems. To say otherwise would be a deliberate misleading the public. The Communist Party speaks of the magic power of a progressive income tax just because such a requirement doesn’t entail danger to the existing system in Russia; it may well be introduced by the authorities if absolutely necessary. But such a necessity must also appear, it must be created by the working people through their struggle, making the introduction of such a tax one of their demands, while realizing that the ultimate goal is to establish the power of the working people.