This paper discusses the introduction of the UBI in the Russian Federation by shortly presenting its theoretical approaches and the need for poverty reduction in the country. The paper argues that political feasibility for UBI is low as increasing taxes (required to finance the additional public spending) will be vetoed by politically and economically highly influential oligarchs that regard their wealth to be at risk from new taxation.
Rising inequality and capital accumulation at high-income households bring severe political and economic disadvantages. To tackle misdistribution of income without burdening middle-income households, this paper proposes to increase progressivity of capital income taxation (CaIT).