Tax FreedomM'''
 


Tax Freedom Day


                 The Tax Freedom Day is the first day of the year in which a nation has supposedly
                 earned enough income to cover its annual tax burden.
                 If Britons were to repay state borrowings by greatly increasing tax for the next
                 few years, the Tax Freedom Day might not arrive until winter!
                 In 2000-2001 government spending was £ 370 billion.
                 It is now leapt to double at over £ 700 billion.
                 Britons do not get twice as much for this monstrous state grab,
                 nor do they get twice as good services.
                 If you really want to get into Tax Freedom Day philosophy look up www.adamsmith.org.
                 Also, wikipedia has a good definition and set of tables for US states and other countries.


                Official Tax Freedom Day calculations are only available for some countries,
                mainly those of Western Europe, US and Australia.
                See the table below for worldwide Tax Freedom Day estimates.

                NOTE RUSSIA'S LIGHT TAX TOUCH --- it could become a tax haven and the best place to work

                Tax enforcement in Russia is another question altogether,
                as are reports of arbitrariness on the part of tax inspectors.
                However, the OUR-WAY strides from unfree country to free country
                are amazing when contrusted with backward steps to unfreedom in Britain.


Worldwide Tax Freedom Days
Country
% Burden
Date
Russia
29%
19 April
United States
31%
23 April
Estonia
31%
24 April
Australia
31%
24 April
South Africa
36%
12 May
Russia (+ energy levies)
36.6%
14 May
UK
38%
20 May
Hungary
38%
20 May
New Zealand
39%
21 May
Slovakia
39%
22 May
Brazil
40%
27 May
Lithuania
41%
30 May
UK (+ energy levies)
42%
2 June
Belgium
44%
10 June
Czech Republick
44%
11 June
Croatia
45%
13 June
Canada
45%
14 June
Slovania
47%
21 June
Poland
48%
25 June
Germany
51%
5 July
France
54%
16 July
Sweden
57%
29 July
Norway
57%
29 July
Israel
59%
2 August

The Russian government has approved tax cuts of $4bn for oil companies from 2009,
with the aim of increasing the production of mineral extraction.

Tax Freedom Day - Russia


There are many freedoms still missing in Russia.
But Russia took the freedom path when it ditched Communism.

Russia could become a truly free country. Undoubtedly freedoms are inching forward unlike in the New USSR commonly called the European Union where freedoms are curtailed daily at Brussels.

Russia is one of many countries for which it is difficult to do the Tax Freedom Day calculations.

In 2001, significant changes were made to Russia's tax regime, including the introduction of a flat rate Personal Income Tax. Tax revenues increased 25% in the first year alone, however, this was largely due to a reduction in tax evasion.

Russia's current tax rates are as follows:

Unified Social Tax (UST) - 26% (includes social security, pension and medical insurance paid by employer)
Corporate Tax - 20%
Capital Gains Tax - 13%-20%
VAT - 0%, 10% and 18%
Personal Income Tax - 13%
Dividend Income Tax - 9%
Asset Tax - 2.2%

In January 2006, Putin announced his ambition to reduce Russia's tax burden.
He wanted to reduce the state burden including resource taxes (good ones)
to below 35%.

The government collected $40 billion in extraction taxes and $45 billion in export duties from oil companies in 2007. The GDP for 2007 was $1.286 trillion and tax $470 billion, thus nearly 20% of the tax take was from resource charges which are neutral i.e. do not create a deadweight loss on the Russian economy. Hence, a truer picture of Russian tax freedom is obtained by deducting $85 billion from the $470 billion, leaving a net tax burden of $385 billion. This equates to a tax freedom day of 19 April.

In 2007, tax revenue as a percentage of GDP was 36.6%. This translates into an 'Adam Smith' tax freedom day of 14th May. The table above shows conventional Adam Smith calculations for other countries. If the UK position is also adjusted by removing resource charges such as fuel, spirit, wine, beer and cider duties, landfill tax and council tax then the adjusted UK tax freedom day reduces to only 20th May, now a full month later than Russia's 19th April. We leave it to other statisticians to make the adjustment for other countries. Thus, in 2007 Putin without knowing it had already reduced the real tax burden to substantially below 35%.