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Signs of Russia’s so-called special military operation are everywhere in Moscow, from roadside recruitment adverts to Z-themed souvenirs.

Now there is another example – a proposed tax hike that amounts to the biggest shake-up of the Russian tax system in a quarter of a century.

As the war in Ukraine drains the Kremlin’s coffers, the government is scrambling to find new ways to finance it.

Pro-Russian 'Z' patches on display at a store in Moscow
View of a store in Moscow selling pro-Russia and pro-war merchandise

Its answer is a new progressive income tax rate that will target the wealthy, as well as a rise in corporation tax.

The proposals were first proposed by Vladimir Putin, the Russian president, on the campaign trail ahead of his re-election in March. Analysts say he was forced to act.

Defence spending has surpassed 8% of GDP and is sucking up nearly a third of the state budget this year.

“It seems like the tax reform is a tool to move the economy from butter toward guns,” Alexander Kolyandr, a non-resident senior fellow at the Centre for European Policy Analysis, said.

“The government is no longer concerned about you eating well, but rather about you producing more guns.”

The reforms mark a dramatic departure from the Russian leader’s previous tax policies.

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In 2001, shortly after assuming office, he introduced a flat rate of 13% that was applied universally, and most Russians have been paying the same rate since.

The move simplified a previously complicated tax regime which few adhered to and it successfully boosted revenues – and his popularity – as a result.

A higher rate of 15% was established in 2021 for those earning more than five million roubles (around £43,500).

Now the finance ministry wants to lower the threshold for the 15% rate, so it applies to annual incomes from 2.4 (around £20,800) to five million roubles, and introduce more bands above.

Incomes between five and 20 million roubles (around £43,500 to £174,000) will be taxed at 18%, those between 20-50 million roubles (around £174,000 to £434,000) at 20%, and anything over 50 million roubles at 22%.

Under the proposals, corporation tax will also increase from 20% to 25%.

Pro-Russian artwork in Moscow, featuring the 'Z' icon used throughout the war in Ukraine

If adopted by the Russian parliament, the changes will come into force next year and generate 2.6 trillion roubles (£22.5bn) in budget revenues, the government said.

“For the past two years, the Russian economy has been running on state spending,” Mr Kolyandr said.

“It cannot last forever, because in effect, it’s mortgaging your future.

“To get this mortgage more appealing, you need more money.”

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According to the Kremlin, 3% of the workforce will be affected by the changes, which it insists are fair.

It says the reforms should solve national problems, reduce inequality and help develop Russia’s regions.

But the official line has been met with some scepticism on the streets of Moscow.

“I think they don’t have enough money for the special military operation, that’s why they’re introducing it,” Sergei told Sky News in Moscow.

Ulyana agreed, adding: “I don’t think it’s fair to tax more from 200,000 [roubles a month].

“This will just affect people who work a lot.”

In reality, everyone here is affected by Russia’s current path.

This is merely the latest impact, and it will be felt in people’s pockets.

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Trump calls for Epstein’s ‘ties’ with Bill Clinton and other Democrats to be investigated

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Trump calls for Epstein's 'ties' with Bill Clinton and other Democrats to be investigated

Donald Trump said he will ask the Justice Department to investigate Jeffrey Epstein’s alleged ties to former US president Bill Clinton and other prominent Democrats.

The call from the US president comes as fresh questions about Mr Trump’s own relationship with the paedophile financier were raised as his name came up multiple times when 20,000 pages were released from Epstein’s files earlier this week. Mr Trump has called claims to link him to Epstein as a “hoax”.

Mr Trump said he would ask US Attorney General Pamela Bondi to look into any alleged involvement between former Democrat leader Clinton and paedophile financier Epstein. She later wrote on X that she would assign the investigation to Jay Clayton, the US attorney for the Southern District of New York.

Along with Mr Clinton, Mr Trump said he would also ask the Justice Department to investigate former treasury secretary Larry Summers, and Reid Hoffman, the LinkedIn founder, who is also a prominent Democratic donor.

Former US president Bill Clinton. File Pic: Reuters
Image:
Former US president Bill Clinton. File Pic: Reuters

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All three men were mentioned in the 20,000 Epstein-related documents released by the House Oversight Committee on Wednesday. None of them, however, have been accused of wrongdoing in the Epstein case.

In a lengthy post on his social media platform Truth Social, Mr Trump said: “Now that the Democrats are using the Epstein Hoax, involving Democrats, not Republicans, to try and deflect from their disastrous SHUTDOWN, and all of their other failures, I will be asking A.G. Pam Bondi, and the Department of Justice, together with our great patriots at the FBI, to investigate Jeffrey Epstein’s involvement and relationship with Bill Clinton, Larry Summers, Reid Hoffman, J.P. Morgan, Chase, and many other people and institutions, to determine what was going on with them, and him.”

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Mr Trump also said: “Epstein was a Democrat, and he is the Democrat’s problem, not the Republican’s problem!

“They all know about him, don’t waste your time with Trump. I have a Country to run!”

What do the named parties say about alleged links to Epstein?

Angel Urena, deputy chief of staff for Mr Clinton, said in 2019: “President Clinton knows nothing about the terrible crimes Jeffrey Epstein pleaded guilty to in Florida some time ago, or those with which he has been recently charged in New York…has never been to Little St James Island, Epstein’s ranch in New Mexico, or his residence in Florida.”

Epstein had been a JPMorgan client from 1998 until 2013.

“The firm deeply regrets any association with this man, and would never have continued doing business with him if it believed he was using the bank in any way to commit his heinous crimes,” JPMorgan said in a statement in September 2023.

Summers, former Harvard University president, recently issued a statement saying he has “great regrets in my life.”

“As I have said before, my association with Jeffrey Epstein was a major error of judgement,” the statement said.

Similarly, Mr Hoffman told Axios in 2019 he regretted his relationship with Epstein.

“My few interactions with Jeffrey Epstein came at the request of Joi Ito, for the purposes of fundraising for the MIT Media Lab.

“Prior to these interactions, I was told by Joi that Epstein had cleared the MIT vetting process, which was the basis for my participation.

“My last interaction with Epstein was in 2015. Still, by agreeing to participate in any fundraising activity where Epstein was present, I helped to repair his reputation and perpetuate injustice. For this, I am deeply regretful.”

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A US man is believed to be the first to have died from a meat allergy linked to tick bites

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A US man is believed to be the first to have died from a meat allergy linked to tick bites

A 47-year-old New Jersey man died last year from alpha-gal syndrome, a red meat allergy caused by a tick bite.

His death is believed to be the first documented death from a meat allergy triggered by tick bites.

Symptoms for alpha-gal syndrome – which in 2011 was first linked to bites from the Lone Star tick – can include hives, nausea, vomiting, diarrhoea, severe stomach pain, difficulty breathing, dizziness and swelling of the lips, throat, tongue or eyelids.

The reaction to the foods that cause the symptoms can be delayed, and usually present themselves a few hours later, unlike some other food allergies, which occur soon after eating.

The new research follows the case of a healthy airline pilot who went camping in 2024 with his wife and children. They had steak for supper. This was unusual, as he rarely ate meat.

He woke at 2am with violent pain in his abdomen, vomiting and diarrhoea.

The next day he ate breakfast and went on a five-mile walk.

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A fortnight later, back in New Jersey, he went to a barbecue, where he ate a hamburger. About four hours later, he grew ill. Shortly afterwards, his son found him on the bathroom floor unconscious.

Am operating theatre. File pic by iStock
Image:
Am operating theatre. File pic by iStock

His son called paramedics, and he was admitted to hospital, but the man was announced dead later that night.

Blood tests conducted by researchers revealed evidence of the alpha-gal syndrome. Proof that it came from a Lone Star tick is inconclusive.

The researchers made the link after a statement from the man’s wife, who had said he had 12 or 13 “chigger” bites near his ankles earlier in the summer.

But the conclusion makes sense, as people in eastern America sometimes mistake the bites from mites with those from larval ticks.

More than 100,000 people in the U.S. have become allergic to red meat since 2010 because of the syndrome, according to one estimate.

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Dr Scott Commins, a leading alpha-gal syndrome researcher at the University of North Carolina, called his death an “unmitigated tragedy”.

“Totally unnecessary and with increased awareness, this won’t happen again,” he said in an email.

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Stranded Chinese astronauts return to Earth after space capsule damaged

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Stranded Chinese astronauts return to Earth after space capsule damaged

Three Chinese astronauts have successfully returned to Earth from their nation’s space station after their capsule was damaged.

The team deployed a red and white striped parachute as they descended, before landing at a remote site in the Gobi Desert in Asia on Friday.

The astronauts – Chen Dong, Chen Zhongrui and Wang Jie – had been due to return on 5 November to end their six-month rotation at the Tiangong space station.

However, their journey back was delayed by nine days because the Shenzhou-20 return capsule they were due to travel in was found to have tiny cracks.

These were most likely caused by the impact of space debris hitting the craft, China’s space agency said.

There are millions of pieces of mostly tiny particles that circle the Earth at speeds faster than a bullet.

They can come from launches and collisions and pose a risk to satellites, space stations and the astronauts who operate outside them.

With the Shenzhou-20 out of action, the crew – who travelled to the space station in April – used a Shenzhou-21 craft instead, which had brought a three-person replacement crew to the station.

The launch of the Shenzhou-21 craft from Jiuquan Satellite Launch Center in Gansu province, China, on 31 October. Pic: Kyodo via AP
Image:
The launch of the Shenzhou-21 craft from Jiuquan Satellite Launch Center in Gansu province, China, on 31 October. Pic: Kyodo via AP

The Chinese space agency said the stranded taikonauts – the Chinese word for astronauts – had remained in good condition throughout.

The first module of the Tiangong, which means “Heavenly Palace”, was launched by the Chinese state in 2021.

It is smaller than the International Space Station, from which Beijing is blocked, due to US national security concerns.

China’s space programme has developed steadily since 2003.

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In a long term plan to advance its orbital capabilities, China plans to land a person on the moon by 2030 and has already explored Mars with a robotic rover.

The Asian nation’s latest space mission brought four mice to study how weightlessness and confinement would affect them.

An engineer from the Chinese Academy of Sciences said the study will help master key technologies for breeding and monitoring small mammals in space.

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