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RE:what abt super high taxes in india ???
by Abhay T on Aug 07, 2007 08:09 PM

Your comment about corruption is correct, but you can't kick economy by reducing taxes. The point is not about less or more tax either. Only few % of people in India pay tax. Most people are still poor and live under poverty line. Many businessmen and high earners don't pay tax priavtely arguing it only ends up in politician's pockets (similar to yours). So, finally the tax comes only from salaried people who don't have any choice. High % of tax is only a perception because we don't see development. This is only a small fraction of India's population. A part money indeed goes into corrupt politican's pocket and their expenses. But, most part of the money is also used for defence, other govt. expenses, development projects like dams, roads, education and research grants. It is simply not sufficient for a country of India's size and population. For this we need a strategy for
a) creating new jobs. So more people can pay tax.
b) Force high earning members to pay tax. If they don't pay tax they should named and shamed publicly ( not violently) and cancel their license of whatever profession they may have.
c) Wisely use revenue in massive development projects.

Morality and corruption are always going to be an issue. You can't solve that in one night. But once more jobs are created and people's earnings start going up the corruption level will automatically come down. This social change requires at least 50-100 years, because of wide gaps in our culture.


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The above message is part of the Discussion Board:
A return to Swadeshi economics?