Papa Shark Nov 9, 2019

There's some discussion on doing away with Income Tax in India altogether. I think it's a bad idea. I'm not an expert but here's my take.

1. IT has been a way to subsidise goods and services for then poorest of poor. Through these subsidies, the economically backward section of our country make ends meet.

2. Removal of IT means the government cannot fund subsidies.

3. So they will go the indirect tax route. All goods and services will be more expensive - for everyone, including the poor.

Show threadextraneousNov 14, 2019
@wabbster Same proposal everywhere from populist governments, the only thing oligarchs want to pay tax for is militarization.
Show threadPapa Shark Nov 15, 2019
@extraneous It's quite sad that people don't think about the ripple effects. It's very selfish.
Show threadextraneousNov 15, 2019
@wabbster It's interesting to study the history of taxation and infrastructure in UK, the motivator is not compassion but economics...
Show threadPapa Shark Nov 15, 2019
@extraneous How so? My uneducated guess would be if taxes were lower, it'd boost demand. Which is essentially good for the economy.
Show threadextraneousNov 15, 2019
@wabbster this is a huge argument in economics - right wing says low tax stimulated demand, left says adequate taxation pays for infrastructure development, stability, inward investment, increased productivity. Historically, my experience is that productivity is higher and life is nicer with left in power (I'm in my 60s so have seen a lot of both approaches to tax).
Show threadPapa Shark Nov 15, 2019
@extraneous the left argument seems sustainable but long term. Also requires a corruption free society I guess.
Show threadextraneous
@wabbster yes it does - no society is entirely free from corruption but you do need democratically accountable surveillance from press and academics and at least a somewhat reliable judiciary - they will always try to steal your tax, or buy pointless submarines, build too many prisons and not enough schools etc - they have to be watched carefully. This is why corrupt governments hate free press and universities so much - they don't want to be watched
Nov 15, 2019 at 7:21pmTusky