Tax elite to reduce inequality!

[derp]

Eminent French economist, Thomas Piketty is of the opinion that the Indian elite should pay more taxes on wealth and income as the country's tax to GDP ratio is less than 11%, which is insufficient to meet the challenges of inequalities. The aim of the government should be to evolve the target towards 30-50%, a figure closer to our western counterparts.

My feelings are similar. The ultra elite should be taxed more as their sources of income(resources utilization, market, employees etc) consist of the people of India, mainly. Thus, it should be mandatory and not obligatory that they should return back a part of it in form of taxes. China, not being a democracy has mobilized a lot to finance a strategy in social investment. It is pretty evident from Indias expenditures on health vis a vis china, which is approx 3% of GDP.

Taxing the rich, contrary to the beliefs prevalent on this forum, is an accepted concept across many nations. To combat inequality, wealth based reservations go hand in hand with caste based reservations.

What can we do? Salaried employees who are able and can afford services, should voluntarily give up subsidies to make an impact. The new policies of the government are slowly weeding out crevices in the system from which the tax money leaks. Taxes reduce inequality and also stabilises the economy!

 

[mk76]

+1
"No one wants to go after rich and well-connected wrongdoer" - Raghuram Rajan

http://indianexpress.com/article/bu...o-go-after-rich-and-well-connected-wrongdoer/

 

[Chaos]

If you are comparing with EU nations, they get a lot of stuff in return for their taxes. They get unemployment benefits, free high quality healthcare, an ecosystem that actually improves the quality of life and a million other things. In India what do we get in return for paying our taxes diligently? A big absolute NOTHING! So why should anyone pay one more penny in tax? Doesn't make any sense to me. Also what subsidy are you talking about? I'm not aware of any subsidy given by the government other than gas which also will be removed sooner or later.

What is required is to put more people in the tax net rather than increase the rate of tax. The latter will achieve nothing - people will start hiding income and as a result the net tax collected will probably reduce. What helps collecting tax is a reasonable tax rate and a larger tax ambit with something given back to the tax payer in return for the taxes paid. In India, the government only takes but gives zilch back. If they really want to implement european laws, they better provide the same facilities and benefits as any EU country. Also the EU doesn't have double, triple, quintuple taxation like in India. There is income tax, corporate tax and GST. That is it. The first thing the government should do is implement GST. Then we can talk.

 

[derp]

They get unemployment benefits, free high quality healthcare, an ecosystem that actually improves the quality of life and a million other things.

Socialistic measures like these is not currently feasible in India due to two prime reasons
1) population
2) India is still in its development phase where the prime moving force is agriculture.

The point is, the government needs funds to kick start the process of social benefits. For that, it needs to tax the super rich heavily. As I have mentioned, if you are an industrialist, you are deriving your raw materials, employees and market from India primarily and thus you should give back and not evade tax.

The first thing the government should do is implement GST. Then we can talk.

The govt wants to do this desperately. However, in democracy, the opinion of the opposition matters and that is exactly the deterrent here! GST would automatically put more funds in the hands of the common man!

 

[manoja2k]

Nice idea, only if all the people who are capable of paying tax are actually paying it. If the tax net is not wide enough then first widen it and stop the leakage before embarking on squeezing the rich.

 

[rdst_1]

Can we not do this again.

 

[nimod]

Actually, Our govt needs to collect more to pay the interests overs debts.
Taxes are soft measures (for now).

 

[derp]

Nice idea, only if all the people who are capable of paying tax are actually paying it. If the tax net is not wide enough then first widen it and stop the leakage before embarking on squeezing the rich.

If all think similarly, a civil war will happen for sure...

 

[Mr India]

That frenchie looks drunk on wine. it wont work in india , black money will increase , investments will further reduce.

 

[derp]

That frenchie looks drunk on wine. it wont work in india , black money will increase , investments will further reduce.

Bhai Harvard ke lagte Ho!

 

[Mr India]

Bhai Harvard ke lagte Ho!

its basic 11 class cbse. even govt. has made tax sops to declare black money. gst is also a way to increase tax net and get revenue more while decreasing taxes. increasing taxes very high wont result in anything good. even raghuram rajan says this , hes also not from harvard but his MIT education is good enough. Only great people like rahul gandhi reach harvard.

 

[derp]

increasing taxes very high wont result in anything good. even raghuram rajan says this

Source?[DOUBLEPOST=1453480245][/DOUBLEPOST]

even govt. has made tax sops to declare black money.

what?

 

[Lord Nemesis]

Its an absurd theory and regardless of where else its implemented and what not, Equality can never be attained through discriminatory practices or policies. It just breeds discriminatory mindsets and inequality even more.

As proof of that, Why is it that caste discrimination is still prevalent despite 60 years of reservations? Why is it that in many temples, a lower caste person is still not allowed regardless of his education and economic status. Why do so many higher caste people still think themselves to be superior beings compared to better educated and well to do lower caste people? Because even if that person rose to that position purely because of their own hard work, those people will just assume that he is an inferior being who got to his position because of the reservations. That sort of feeling will just get stronger over time. Caste and gender based discrimination is on the rise and seeping into places where it was not there earlier.

So yeah, discriminatory schemes should be used in discretion because they always have the side effect of fueling inequality and discrimination. In fact, the sole reason these kind of reservations are still being continued is because the politicians do not want these discriminatory systems to end as dividing people helps them build vote banks.

As for taxation, the problem in India is tax leakage and that happens at the lower levels more than the upper levels of the tax bracket. If the govt can stop leakage at the 10% bracket, then tax revenues will multiply by several hundred fold even compared to increasing the taxes for some 0.0001% rich. The Direct tax code was supposed to reduce this sort of discrimination when its implemented.

 

[derp]

As for taxation, the problem in India is tax leakage and that happens at the lower levels more than the upper levels of the tax bracket. If the govt can stop leakage at the 10% bracket, then tax revenues will multiply by several hundred fold even compared to increasing the taxes for some 0.0001% rich. The Direct tax code was supposed to reduce this sort of discrimination when its implemented.

The black money bill
GST, if the current govt gets past the logjam.

So yes, the government is doing its part. However, what can the government do, if corporations themself try to evade tax by rerouting their funds via tax havens like Mauritius etc. You always blame people that they hide their income. What about pvt firms like yours that hide income and save on taxes. How would you justify wrongdoings of your own employer.

It is pretty evident in the salaries of the top echleons of the companies. The efficiency is almost the same, however the salaries have risen manifold. This is creating even greater inequality in the society.[DOUBLEPOST=1453481869][/DOUBLEPOST]

Its an absurd theory and regardless of where else its implemented and what not, Equality can never be attained through discriminatory practices or policies. It just breeds discriminatory mindsets and inequality even more.

Discrininatory? Lol! How can a tax regime be discriminatory when corporations earning millions hide their taxes? Just compare the gini indices of various countries to see what I am talking of..

 

[derp]

As proof of that, Why is it that caste discrimination is still prevalent despite 60 years of reservations? Why is it that in many temples, a lower caste person is still not allowed regardless of his education and economic status. Why do so many higher caste people still think themselves to be superior beings compared to better educated and well to do lower caste people? Because even if that person rose to that position purely because of their own hard work, those people will just assume that he is an inferior being who got to his position because of the reservations. That sort of feeling will just get stronger over time. Caste and gender based discrimination is on the rise and seeping into places where it was not there earlier

This is enshrined in our Constitution. Although the government generally uses this as votebank politics, however, the recent events in Hyderabad throws some light on how dalits are treated and why this reservation is required in today's day and age! The concept of creamy layer tries to correct it though ..

Reservation(right to equality) is a political right. Socioeconomic equality however, is not. Thus, the government by taxes tries to bring in equality. Corporations don't understand this, alas!

 

[derp]

As proof of that, Why is it that caste discrimination is still prevalent despite 60 years of reservations? Why is it that in many temples, a lower caste person is still not allowed regardless of his education and economic status. Why do so many higher caste people still think themselves to be superior beings compared to better educated and well to do lower caste people? Because even if that person rose to that position purely because of their own hard work, those people will just assume that he is an inferior being who got to his position because of the reservations. That sort of feeling will just get stronger over time. Caste and gender based discrimination is on the rise and seeping into places where it was not there earlier

This is enshrined in our Constitution. Although the government generally uses this as votebank politics, however, the recent events in Hyderabad throws some light on how dalits are treated and why this reservation is required in today's day and age! The concept of creamy layer tries to correct it though ..

Reservation(right to equality) is a political right. Socioeconomic equality however, is not. Thus, the government by taxes tries to bring in equality. Corporations don't understand this, alas!

 

[Lord Nemesis]

62% of our tax revenues comes from corporate taxes. In contrast only 20% comes from individual income taxes.Out of that 20%, close to 90% of the amount comes from the 30% tax bracket. Even with a massive population that falls into the 10% bracket in the country, we are still getting a very minuscule amount from that bracket.

The corporate's are at least paying enough that it constitutes a big part of the countries tax revenues unlike the vast majority of the population. But unlike you, I don't try to justify any wrong doing with some self patronizing crap.
So guess what, you want the tax net to be full of holes, but complain about only a certain kind of fish escaping. Guess what the solutions is? Don't leave any holes for any sort of fish to escape.

 

[derp]

62% of our tax revenues comes from corporate taxes. In contrast only 20% comes from individual income taxes.Out of that 20%, close to 90% of the amount comes from the 30% tax bracket. Even with a massive population that falls into the 10% bracket in the country, we are still getting a very minuscule amount from that bracket.

So imagine what we would achieve if corporations pay the full amount. Furthermore, they have this holier than thou attitude. Do you have any idea how much our tax base is eroded due to the malpractices of corporates? They come into our markets, dump inferior goods and also evade taxes and you think this is justified as some illiterate citizen hides his true income?

 

[derp]

62% of our tax revenues comes from corporate taxes. In contrast only 20% comes from individual income taxes.Out of that 20%, close to 90% of the amount comes from the 30% tax bracket. Even with a massive population that falls into the 10% bracket in the country, we are still getting a very minuscule amount from that bracket.

The corporate's are at least paying enough that it constitutes a big part of the countries tax revenues unlike the vast majority of the population. But unlike you, I don't try to justify any wrong doing with some self patronizing crap.
So guess what, you want the tax net to be full of holes, but complain about only a certain kind of fish escaping. Guess what the solutions is? Don't leave any holes for any sort of fish to escape.

Also, if you have some time, which I doubt looking at your steam game collection, go through the book Capital in the 21st century to understand the mechanism of inequality. Make some use of the amazon sale!

 

[Lord Nemesis]

So imagine what we would achieve if corporations pay the full amount. Furthermore, they have this holier than thou attitude. Do you have any idea how much our tax base is eroded due to the malpractices of corporates? They come into our markets, dump inferior goods and also evade taxes and you think this is justified as some illiterate citizen hides his true income?

Imagine what you would achieve if every individual were paying their taxes honestly. Do you have any idea how much our tax base is eroded due to the malpractices of these people?

Why is it justified for one person to pay taxes while lac's of others with the same sort of income do not have to pay just because they are not in the tax radar? And why do you want only the corporate's to bear the brunt when lac's or crores of people get way without paying any taxes at all. Sorry, I don't see any sort of equality or justice in that at all.

This is enshrined in our Constitution. Although the government generally uses this as votebank politics, however

Dr. Ambedkar did not mean for reservation system to be implemented in this manner or for so long. The politicians just used it as an opportunity for vote bank politics.

the recent events in Hyderabad throws some light on how dalits are treated and why this reservation is required in today's day and age! The concept of creamy layer tries to correct it though ..

The increase in casteism has a lot to do with the reservation system too. AP/Telangana had lot of caste feeling to begin with, but the reservation system bought caste-ism to a lot of educational institutions where it want's so prevalent before. HCU is obviously different because it already had a lot of caste-ism from a long time, but apparently from what I heard, there too, it has increased over the years.

And yeah, don't try to preach to me about caste-ism and its causes because I have experienced it first hand myself because some people (students and professors) apparently got confused into believing that I had reservation. Most victims of caste ism that I have encountered at college were victims because of the reservation system more than because they belong to a particular caste.

If you want to erase caste-ism, don't make students write their caste and religion in very damn application form right from the school admissions to college entrance tests. caste reservations does absolutely nothing to reduce caste-ism. And yeah, it goes for gender reservations too. Regardless of what other benefits they tout to have, they definitely serve to add more fuel to the fire.

The system literally amplifies their belief that they are superior and the people availing reservations to be inferior. Once when I was shortlisting resumes of candidates for interviews, an ex-manager at my work place told me to weed away the profiles of female candidates because as per him girls any way get into colleges because of reservations these days. Naturally, I put an end that nonsense, but that is the level of poisoning that caste or gender based reservation system have brought in. In fact this guy had nothing against girls as he himself recruited quite a number of them, but somewhere down the line, he started believing that after seeing a lot of girls with poor skills.

Thus, the government by taxes tries to bring in equality.

Which obviously is absurd and doesn't work that way. Can you show me any place in the world where taxing silly a select few and giving random freebies to others using that money has resulted in any sort of equality? Sorry, but that sort of thing only helps create a lot of lazy self-entitled people.

I gave one example of how people of one village got so accustomed to power theft that they got on to the road and pelted stones and burned down two buses after electricity to their village was cut (after negotiations and offering heavily subsidized electricity). They want to continue wasting electricity and water as they please while somebody else is responsible for paying their bills and if denied, they will destroy public property which obviously is not their problem because that is also funded by tax payers.