Tuesday, August 22, 2017

Tax hikes cause decrease in Russian entrepreneurs

The Russian economy ministry reported on Monday that the number of registered Russian entrepreneurs has fallen seven percent in the past three months.

From December 2012 through the end of February 2013 the total number of registered individual entrepreneurs decreased by nearly 300,000, the Wall Street Journal reports.

The decline in entrepreneurs corresponds with the implementation of increased obligatory insurance contributions. The new insurance legislation effectively doubled the payments owed by individual citizens.

Such payments are designed to be a tax on earnings, which are funneled into a state-run pension fund. As of January 1, individuals are required to pay approximately $1,170 per year towards the fund - more than twice the $500 annual rate required in years past, according to the Wall Street Journal.