How about abolishing the income tax for citizen altogetherHow about abolishing direct income tax for citizen altogether. It seems quite radical though I am sure :-)
But if we consider that money has no value if we are not spending it to buy goods or services with it, than abolishing personal tax can make sense. So impose decent service tax , excise duty, custom duty on every possibly services and goods money can buy. including tax on inheritance (investments/cash/property/goods) which can be considered as a service provided possibly by our dead parents.
This way, whether you are a poor or rich farmer, salaried or business man, it doesn't matter I guess. So if you are buying nothing, "Miser the great" your money is wasted, and some 30% tax can be imposed once you pass it on to your children as inheritance.
Another radical view is to get rid of paper money altogether... introduce electronic money and tax on each transaction whether to buy goods or service. So a giant computer can tax you money automatically without govt wasting them on our friendly neighborhood tax-man.
Other option (instead of electronic money) is to make paper money with an expiry date on it :-), so you do transaction and pay tax on the spot, or lose it altogether
