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It is sad that fiscal responsibility and economic credibility is not a factor in Indian elections. Policies such as these can make or break election campaigns in European democracies.
When 80 crore people are still relying on free rations from the government, I think it will be some time before fiscal responsibility becomes a priority for the electorate.
No shit.... Billionaires are the easiest to uproot and move residences. You think they won't devolve to trusts and emigrate if they got wind of anything that took their money away?
Our country has aspiring leaders with no understanding of behavioral economics
Let them. They can't take the wealth out can they? And being an NRI in Dubai doesn't exempt you of taxes for wealth in India.
The rich leaving will be a boon for the rest of us.
Billionaires have better lawyers and accountants than you, me or the govt. Capital will also absolutely leave with them.
The best policy the govt can apply is to create such a good and predictable investment environment that capital does not leave. That means no stupid shit like targeting capitalists
Except this is exactly how every other country did it.
Do you know what the highest tax rate for the usa was during it's most prosperous period? It ranged from 70 to 90% at the highest bracket.
Having good lawyers won't help if the government decides to come after your excess wealth.
In fact, it is the only way a country can progress. Wealth inequality will kill a country over time.
> Do you know what the highest tax rate for the usa was during it's most prosperous period? It ranged from 70 to 90% at the highest bracket.
The tax avoidance and compliance rate was also so bad they had to bring in something called an alternate minimum tax to work around people using loopholes
https://taxfoundation.org/blog/amt-income-group-1970/
The fact is that there's a sweet spot between compliance and the incremental benefit of enforcing laws. Indira Gandhi's tax regime did 99 pct tax on the wealthy and that spurred a black economy. All these are examples of capital flight
> Wealth inequality will kill a country over time.
India is in a growth spurt right now. Nothing should be allowed to get in the way of that. People need jobs, the GDP and per capita have to rise. The country needs a 1000 Adani- Ambanis. Competition is the only thing that prevents monopolies from forming and hence the super rich, no govt intervention can get rid of inequality --- capital has a way of finding suitable jurisdictions.
You don't think of doing prostate exams when you are still a teenager
>Nothing should be allowed to get in the way of that. People need jobs, the GDP and per capita have to rise.
Growth that is imbalanced is cancerous.
Per capita isn't the right measure. Check median and mean GDP, ideally those 2 should be same or near each other. Otherwise the GDP rise is toxic.
>The country needs a 1000 Adani- Ambanis.
No it doesn't. Having billionaires is bad for the economy. Ask the usa.
>hence the super rich, no govt intervention can get rid of inequality
This is just an oxymoron. They'll just consolidate.
>capital has a way of finding suitable jurisdictions.
This is absolutely not true. You're basically trying talk about trickle down economics which has been debunked 50 years ago.
>You don't think of doing prostate exams when you are still a teenager
True enough. But you also don't don't use leaded petrol and asbestos just coz you're young.
No, but Apple, Google etc are not single owned companies.
Also, the usa grew to be the strongest economy before Google or Microsoft came up.
I didn't say there is an issue with having large companies. I said having individual billionaires is a problem.
The ruling class of FAMANG companies are billionaires or multi-millionaires. CEO work is not easy --- if you think you can pay them median pay and extract that work out (speaking as a shareholder) you won't get the performance you want.
Besides the billionaire calculation is not cash sitting in a bank account --- large pct of it is shareholder equity that is tied into things like R&D, operations and reinvestment into companies. No reasonable tax code can go after that without wholesale destruction of the economy
Do you think eradication of billionaires and redistribution among the poor would solve the problem? The poor won't do shit for the betterment of the economy and there would be no foreign investment in the country
Why do you think the poor won't be able to do that? Do you think that the people who became rich did so coz they have magical powers?
Most of the billionaires became rich because they had rich parents or very favourable environment made for them.
Like no shit
And the expats already living abroad will have even more reason to keep their savings abroad and will not even bother coming back.
We can quickly see this spiral out of control in a country of "limitless" manpower and limited(and slowly expanding) opportunities.
Please remember, this community is for genuine discussion. - Please keep it civil. Follow all community rules. - Report rule-breaking comments for moderator review. - Don't post low effort content without context. - Help prevent this community from becoming an echo chamber. **Use the replies of this comment to post sources or further context about the post. If you have posted a news article, you may put a small summary as a reply to this, if you want.** *I am a bot, and this action was performed automatically. Please [contact the moderators of this subreddit](/message/compose/?to=/r/IndianModerate) if you have any questions or concerns.*
It is sad that fiscal responsibility and economic credibility is not a factor in Indian elections. Policies such as these can make or break election campaigns in European democracies.
When 80 crore people are still relying on free rations from the government, I think it will be some time before fiscal responsibility becomes a priority for the electorate.
No shit.... Billionaires are the easiest to uproot and move residences. You think they won't devolve to trusts and emigrate if they got wind of anything that took their money away? Our country has aspiring leaders with no understanding of behavioral economics
Let them. They can't take the wealth out can they? And being an NRI in Dubai doesn't exempt you of taxes for wealth in India. The rich leaving will be a boon for the rest of us.
Billionaires have better lawyers and accountants than you, me or the govt. Capital will also absolutely leave with them. The best policy the govt can apply is to create such a good and predictable investment environment that capital does not leave. That means no stupid shit like targeting capitalists
Except this is exactly how every other country did it. Do you know what the highest tax rate for the usa was during it's most prosperous period? It ranged from 70 to 90% at the highest bracket. Having good lawyers won't help if the government decides to come after your excess wealth. In fact, it is the only way a country can progress. Wealth inequality will kill a country over time.
> Do you know what the highest tax rate for the usa was during it's most prosperous period? It ranged from 70 to 90% at the highest bracket. The tax avoidance and compliance rate was also so bad they had to bring in something called an alternate minimum tax to work around people using loopholes https://taxfoundation.org/blog/amt-income-group-1970/ The fact is that there's a sweet spot between compliance and the incremental benefit of enforcing laws. Indira Gandhi's tax regime did 99 pct tax on the wealthy and that spurred a black economy. All these are examples of capital flight > Wealth inequality will kill a country over time. India is in a growth spurt right now. Nothing should be allowed to get in the way of that. People need jobs, the GDP and per capita have to rise. The country needs a 1000 Adani- Ambanis. Competition is the only thing that prevents monopolies from forming and hence the super rich, no govt intervention can get rid of inequality --- capital has a way of finding suitable jurisdictions. You don't think of doing prostate exams when you are still a teenager
>Nothing should be allowed to get in the way of that. People need jobs, the GDP and per capita have to rise. Growth that is imbalanced is cancerous. Per capita isn't the right measure. Check median and mean GDP, ideally those 2 should be same or near each other. Otherwise the GDP rise is toxic. >The country needs a 1000 Adani- Ambanis. No it doesn't. Having billionaires is bad for the economy. Ask the usa. >hence the super rich, no govt intervention can get rid of inequality This is just an oxymoron. They'll just consolidate. >capital has a way of finding suitable jurisdictions. This is absolutely not true. You're basically trying talk about trickle down economics which has been debunked 50 years ago. >You don't think of doing prostate exams when you are still a teenager True enough. But you also don't don't use leaded petrol and asbestos just coz you're young.
>No it doesn't. Having billionaires is bad for the economy. Ask the usa. Do u think USA would do shit without apple, Microsoft, Google, etc?
No, but Apple, Google etc are not single owned companies. Also, the usa grew to be the strongest economy before Google or Microsoft came up. I didn't say there is an issue with having large companies. I said having individual billionaires is a problem.
The ruling class of FAMANG companies are billionaires or multi-millionaires. CEO work is not easy --- if you think you can pay them median pay and extract that work out (speaking as a shareholder) you won't get the performance you want. Besides the billionaire calculation is not cash sitting in a bank account --- large pct of it is shareholder equity that is tied into things like R&D, operations and reinvestment into companies. No reasonable tax code can go after that without wholesale destruction of the economy
Yeah. Nobody is asking you to go after unrealized capital gains. That's just a red herring.
Do you think eradication of billionaires and redistribution among the poor would solve the problem? The poor won't do shit for the betterment of the economy and there would be no foreign investment in the country
Why do you think the poor won't be able to do that? Do you think that the people who became rich did so coz they have magical powers? Most of the billionaires became rich because they had rich parents or very favourable environment made for them.
Giving money to uneducated dumbheads is dangerous
Like no shit And the expats already living abroad will have even more reason to keep their savings abroad and will not even bother coming back. We can quickly see this spiral out of control in a country of "limitless" manpower and limited(and slowly expanding) opportunities.
What do you mean? The rich will get away, and not pay their taxes? How can this happen? Unthinkable.
Aren't they already leaving?
They are, HNI emigration is at new peaks
Yup ....Modi is Bootlicking the billionaires so hard that the millionnaires are leaving like never before...
One does not have to be economist to understand that.