Continued
from previous post –
All
tall claims made by our government in many advertisements that this
earning is used in development of the country are false. One expert
told me that the total earning from income tax goes to make payment
of salaries and other expenses of that department of Income tax. That
means this tax is of no use as a development component.
I
wish our government showed the details of revenue earning of all
different taxes we as citizens pay. Largely the indirect taxes are
the main component in government earning.
Suppose
personal income tax is removed, our government shall have lost about
2% in total revenue. As against that, people will have no pressure on
them about that tax and that will give great relief to earning
citizens. They will have all the money to them and they will spend it
the way they want. They can keep that earning in their banks without
any mental torture. They will spend it on various issues such as
food, relaxing, tours, visiting restaurants, enjoying that money the
way the want. All these expenditures are coming under indirect taxes
of some or the other type. We know our rates for these indirect taxes
are very high. Therefore, total earning of our government by that
will more than compensate for that lose due to waiving of income tax.
Some experts believe that actually earning of government will
increase by about 4% if that comes out then removing income tax will
prove a better decision.
Since
personal income tax is abolished, the problem of black money is also
removed. People working for income tax department will be given work
on other jobs government has, and so that will not be any big issue.
As
for corruption in society, it is a very different subject. Black
money has nothing to do with that. Our government is deliberately
mixing these two different subjects to confuse people. Gullible
citizens can be confused and fooled by that. When personal income tax
removed black money, issue will not exist but corruption will
continue to pester our economy. Citizens should not allow government
to fool them and demand that government should stop fooling them.
Income
from corruption will also become white income after income tax
abolished. Those people can keep that money in banks and spend it the
way they want without fear. They can also invest that money in market
and by that government will definitely benefit. Various activities
due to this money earned by corrupt means will add to earning in GST.
That shall more than compensate for lose due to personal income tax
removal. Country can also benefit by such investments. Nobody will
keep that earning in homes and hide it from the mainstream economics
of the state. There are several advantages from that. This will over
the period, prove that personal income tax was a wrong proposition.
Many countries do not have personal income tax. We should study the
economic activity of those countries to understand how without this
tax they manage their economics.
Most
of the economists with whom I discussed this subject, finally agreed
that personal income tax is a measure hurdle in the development of
our country. Our country will progress more swiftly if this terror
tax is completely abolished and freedom of people assured by that.
However, this will reduce the capacity of government in controlling
people. Black mailing opposition and antagonist element will be more
difficult. Nevertheless, if the government is fair then this should
not be any issue.
We
shall try to understand causes of corruption, how black money is not
directly concerned with corruption in next post.
This
serial will continue in next post –
You may contact
me on my Email ID given below,
You are invited to
visit my other blogs
Ashok
Kothare,
http://ashokkotharesblog.blogspot.com/
for stories
I
reckon,
http://kotharesviews.blogspot.com/
for philosophy
You
may visit blog, Ideas
and tips on any subject,
http://kotharay.blogspot.in/
for intelligent discussions.
Freedom
of Expression, http://blogs.siliconindia.com/kothare/
for intelligent discussions
My
New Marathi Blog, http://kothare-marathi.blogspot.in/
मला
असे वाटते
No comments:
Post a Comment