Economic Overview - After two years of growth driven by military spending related to the Ukraine war, Russia's economy is now slowing, with declining oil revenues and an increasing budget deficit [1] - The Kremlin is looking to ordinary citizens and small businesses to stabilize its finances [1] Tax Increases - A proposed increase in value-added tax (VAT) from 20% to 22% is expected to generate up to 1 trillion rubles (approximately $12.3 billion) for the state budget, effective from January 1 [2] - The legislation also lowers the VAT collection threshold for businesses from 60 million rubles ($739,000) to 10 million rubles ($123,000) by 2028, targeting tax avoidance schemes [2] Impact on Small Businesses - The new VAT regulations will affect previously exempt businesses, including corner stores and beauty salons, potentially leading to financial strain [3][2] - Concerns have been raised that the requirement for small businesses to collect VAT may lead to closures, resulting in lower budget revenues instead of the intended increase [6] Additional Tax Proposals - The government is considering increasing taxes on various goods, including spirits, wine, beer, cigarettes, and vapes, with specific increases outlined for stronger spirits [4] - Other proposed fee increases include those for renewing driver's licenses and a potential tech tax on digital equipment, which could reach up to 5,000 rubles ($61.50) for high-priced items [4] Public Sentiment - The economic slowdown and tax increases indicate that both President Putin and ordinary Russians will face difficult choices between military spending and consumer welfare [5] - Public reactions in Moscow reflect a mix of dismay and resignation, particularly regarding the impact of higher food prices on poorer regions and low-income individuals [5]

Core Viewpoint - The former Governor of New York, Andrew Cuomo, argues that increased taxes will lead to an outflow of population from New York City [1] Group 1: Tax Implications - Cuomo emphasizes that raising taxes could drive residents to relocate to states with lower tax burdens [1] - The potential tax increases are seen as a deterrent for both individuals and businesses considering New York City as a viable place to live and operate [1] Group 2: Population Trends - The article suggests that New York City has already experienced significant population shifts, with many residents leaving for more tax-friendly environments [1] - Cuomo's comments reflect concerns about the long-term sustainability of New York City's population if tax policies are not carefully considered [1]

Core Viewpoint - President Trump stated that if the major legislation does not pass, taxes will increase by 68% [1] Group 1 - The proposed legislation is critical to prevent a significant tax increase [1] - The potential tax increase of 68% highlights the urgency of passing the legislation [1]

Core Viewpoint - President Trump warns Republican lawmakers that failure to act will result in the highest tax increase in history rather than the largest tax cut [1] Group 1 - Trump emphasizes the urgency for Republican action to avoid significant tax hikes [1]