Someone has suggested abolishing income tax

     

Passionate writer about current events, politics và happenings nationally và globally. An agent of communal harmony và an ardent Arsenal fan.




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Passionate writer about current events, politics & happenings nationally & globally. An agent of communal harmony and an ardent Arsenal fan.


Subramanian Swamy, the man who minces no words with his opinions và views has been in the news of late for his tirade against Raghuram Rajan and the Chief Economic Advisor Mr. Arvind Submaniam. For now, our interest is not on his tirades against them but on his opinion on income tax & why he wants it lớn be removed. Subramanian Swamy wrote on The Hindu on an “imminent crash” of the Indian economy & also suggested a way out for the Indian economy. He has suggested the abolition of income tax lớn boost the economic growth of India. Where is he spot on? Where are the grey areas? Let’s have a look.


Before we go into this, let us quickly look into some important indicators of the economy that as Mr. Swamy suggests is heading towards a tailspin despite a reported 7% growth. 1. Exports and imports of the majority of the commodities have declined steadily.
Adding khổng lồ this, very slow or nil employment generation all point to lớn one direction, the economy is indeed in a tailspin, will Swamynomics work?

If as suggested by Mr. Swamy, income tax could be abolished, it would have the following cascading effects:


1. The salaried employees who are the main tax payers of India will be able to lớn boost their expenditures and as a consequence, it will boost other businesses besides the salaried employees can retain enough for investments.
2. Trung quốc leads India in a lot of economic parameters, but lags in one thing, a crucial thing, consumption as a percentage of GDP, India is way ahead of China. đài loan trung quốc is an export driven economy, India is a consumption driven economy & it is for that reason, the abolition of income tax makes perfect sense lớn boost consumption.


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3. This would also unearth the black money stashed by the ultra rich khổng lồ avoid tax và gets injected into the economy. The ultra rich and the poor both are out of the tax bracket. The brunt is borne by the middle class who are the engine of India’s economy.
Income tax contributes about 2 lakh crores for the government, abolishing that is no straight forward task unless there is a concrete plan to lớn earn from other means. Swamy suggests it could be earned by the auctioning of resources. Auctioning of resources is already happening, auctioning and taxation is a double burden on the consuming Indian who is the prime mover of the economy. The government taxes the citizen and auctions the resources, the money spent by telecom companies in auctions are recuperated from the consumer in the size of high voice or data prices. Both of these reduces the consumption power nguồn of the ordinary citizen.
1. The global economy should improve sooner than later and thereby kick-starting the sluggish exports và imports
2. Boost consumption of Indians by reduction or abolition of income tax. India’s strength has always been its consumption power, the demographic dividend will aid consumption, we need lớn harness this strength of ours.
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