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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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Donald Trump withdraws support for Marjorie Taylor Greene after she calls for Epstein files to be released

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Donald Trump withdraws support for Marjorie Taylor Greene after she calls for Epstein files to be released

Donald Trump has withdrawn support for Republican Congresswoman Marjorie Taylor Greene – which she claims is over her support for releasing files about Jeffrey Epstein.

In comments made on Truth Social, Mr Trump said he would support any challenger who wants to take Ms Greene’s seat in Georgia.

It comes after weeks of the MAGA ally breaking ranks from the president – and according to a post on X after his withdrawal, she believes it’s over a possible vote on releasing all of the Epstein files.

Read more: Marjorie Taylor Greene – the MAGA ally known for embracing conspiracies and insulting journalists

After the US government shutdown ended, a petition to vote on the full release of the files about disgraced pedophile financier Epstein received enough signatures – including Ms Greene’s – to bring it to a vote in the House of Representatives.

While such a vote does not yet have a date, Mr Trump has called the files a “hoax” and accused the Democrats of using them “to try and deflect from their disastrous SHUTDOWN”.

Earlier this week, thousands of documents from Epstein were released, which reference Mr Trump, Andrew Mountbatten-Windsor and Peter Mandelson, among others.

Read more: What do Epstein documents say about Trump, Andrew and Mandelson?

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The new Epstein files: The key takeaways

Trump attacks ‘Wacky’ Majorie

In his post on Truth Social overnight, Mr Trump said: “all I see “Wacky” Marjorie do is COMPLAIN, COMPLAIN, COMPLAIN!

“It seemed to all begin when I sent her a Poll stating that she should not run for Senator, or Governor, she was at 12%, and didn’t have a chance (unless, of course, she had my Endorsement – which she wasn’t about to get!).”

The president went on to claim “she has told many people that she is upset that I don’t return her phone calls anymore”, before adding: “I can’t take a ranting Lunatic’s call every day.

“I understand that wonderful, Conservative people are thinking about primarying Marjorie in her District of Georgia, that they too are fed up with her and her antics and, if the right person runs, they will have my Complete and Unyielding Support.”

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Will new Epstein emails hurt Trump?

Greene: Trump’s fight to stop files ‘astonishing’

Around an hour later, Ms Greene responded on X to say “President Trump just attacked me and lied about me”, and shared text messages to him and a White House aide about releasing information on the deceased pedophile financier Jeffrey Epstein.

“Of course he’s coming after me hard to make an example to scare all the other Republicans before next weeks vote to release the Epstein files,” she added on social media.

“It’s astonishing really how hard he’s fighting to stop the Epstein files from coming out that he actually goes to this level.”

Read more: Why this is dangerous terrain for Trump

Marjorie Taylor Greene was an ardent supporter of MAGA and became a Republican Congresswoman in 2021. File pic: AP
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Marjorie Taylor Greene was an ardent supporter of MAGA and became a Republican Congresswoman in 2021. File pic: AP

She then said “most Americans wish he would fight this hard to help the forgotten men and women of America… that’s what I voted for”.

“I have supported President Trump with too much of my precious time, too much of my own money, and fought harder for him even when almost all other Republicans turned their back and denounced him,” she added.

“But I don’t worship or serve Donald Trump… I remain the same today as I’ve always been and I will continue to pray this administration will be successful because the American people desperately deserve what they voted for.”

Watch Sky’s Martha Kelner’s encounter with Greene from earlier this year…

Earlier this week, Mr Trump accused the MAGA loyalist of “catering to the other side” after she criticised his focus on foreign policy, which she described as “America Last”.

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Trump rebukes MAGA ally over foreign policy

Epstein took his own life in prison in 2019 while awaiting a trial for sex trafficking charges and was accused of running a “vast network” of underage girls for sex. He pleaded not guilty.

Following a conviction for soliciting prostitution from a minor in 2008, he was registered as a sex offender.

It comes after Democrats on the House Oversight Committee published several emails, which they said “raises questions about Trump and Epstein’s relationship, Trump’s knowledge of Epstein’s crimes”, and the president’s relationship to Epstein’s victims.

Mr Trump has consistently denied knowledge of Epstein’s crimes and called claims linking him to the financier a “hoax”.

Read more on Jeffrey Epstein:
Ghislaine Maxwell ‘wants Trump to commute sentence’
What Epstein’s right-hand woman said about Trump and Andrew

The White House also said the “selectively leaked emails” were an attempt to “create a fake narrative to smear President Trump”.

Republicans retaliated by releasing more than 20,000 pages from Epstein’s files and accusing Democrats of “cherry-picking” their documents.

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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
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Former US president Bill Clinton. File Pic: Reuters

Read more:
Who appears in the new Epstein files?
Why this is dangerous terrain for Trump

What do Epstein documents say about Trump and Andrew?

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.”

More on Donald Trump

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
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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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