Russian MPs Push for After‑Tax Income Consideration in Per Capita Calculations
Deputies from the LDPR faction, led by party chairman Leonid Slutsky, have proposed a change to how average family income per capita is calculated. The draft bill, sent to the Russian government for finalization, centers on evaluating after‑tax income rather than gross earnings. The update was reported by TASS.
The bill notes that at present, calculations of average income per capita include the income of every family member or every person living alone before taxes are taken out.
The explanatory note argues that the money families can actually use to cover basic living costs, raise and maintain households, and support children is the income remaining after tax payments. This is the amount that should be considered when assessing living standards.
According to the document, the average per‑capita income serves as a benchmark for identifying low‑income families and individuals living alone. The authors contend that it is more appropriate to focus on the portion of income that citizens can allocate for essential needs.
The note contends that, in practice, people who struggle to meet fundamental needs and require support are sometimes classified as having sufficient income on paper, which deprives them of state aid. This discrepancy, the authors argue, fosters social tension and does not align with the aims of social policy.
Separately, President Vladimir Putin has stated that large families in Russia could save about 1,300 rubles per month by doubling the tax deduction. He also instructed the Council of Ministers to pay special attention to supporting families in need.
Experts say the proposal, if adopted, could alter how welfare thresholds are determined and influence eligibility for aid programs. Proponents argue that after‑tax income better reflects the real budget available to households, particularly in an economy with varying tax obligations and family structures. Critics, however, warn that shifting the criterion could reduce indicators of poverty and complicate comparative analyses over time. The discussion continues as the government weighs the potential fiscal and social impacts. [Attribution: TASS report on the bill’s submission and the president’s remarks]