{"id":31863,"date":"2018-10-29T11:35:50","date_gmt":"2018-10-29T06:05:50","guid":{"rendered":"https:\/\/blog.forumias.com\/?p=31863"},"modified":"2018-10-29T11:35:50","modified_gmt":"2018-10-29T06:05:50","slug":"flawed-fiscal-policy-favours-the-affluent","status":"publish","type":"post","link":"https:\/\/forumias.com\/blog\/flawed-fiscal-policy-favours-the-affluent\/","title":{"rendered":"Flawed fiscal policy favours the affluent"},"content":{"rendered":"<p><a href=\"http:\/\/www.thehindu.com\/business\/Industry\/flawed-fiscal-policy-favours-the-affluent\/article22486501.ece\"><b>Flawed fiscal policy favours the affluent<\/b><\/a><\/p>\n<p><b>Context<\/b><\/p>\n<ul>\n<li>The top 1% income earners received 6% of the total income in the early 1980s; it went up to 15% in 2000 and today stands at 22%.<\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">Data from India\u2019s Income Tax department showed that 59,830 individuals reported gross total income more than \u20b91 crore. <\/span><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">Over 30,500 individuals reported earning salary income of over \u20b91 crore. <\/span><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">Five individuals reported earning salary income between \u20b9100 crores and \u20b9500 crore. <\/span><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">Thirty two persons showed gross total income over \u20b9100 crore. <\/span><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">Only one individual showed the income over \u20b9500 crore.<\/span><\/li>\n<\/ul>\n<p><b>Global comparison:<\/b><\/p>\n<ul>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">IMF research papers give country-wise figures of the share of the billionaires in the GDP of each country.<\/span><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">The worth of dollar billionaires is most skewed in Russia, the U.S. and India which are home to a substantial number of billionaires.<\/span><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\"> The World Inequality Report points out that inequality declined in China in the past decade and growth was faster compared to India. <\/span><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">China\u2019s per capita income was five times that of India in 2016.<\/span><\/li>\n<\/ul>\n<p><b>Reasons for growing inequality in India:<\/b><\/p>\n<ul>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">Low tax to GDP ratio.<\/span><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">Fiscal policies fail to reduce inequality levels because of low tax to GDP ratio.<\/span><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">Agricultural income is not taxed with 2,746 cases showing agricultural income of \u20b91 crore and more in the last seven years.<\/span><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">The 10% tax on dividends above \u20b910 lakh is a mirage; it should have been at least 25% with exemption for dividends up to \u20b910,000.<\/span><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">Additional resource mobilisation is concentrated on indirect taxes with a slew of relief measures in direct taxes, benefiting only the rich.<\/span><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">The stock market boom calls for revisiting the present policy of exempting long term capital gains on shares held for 12 months and more. <\/span><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">India\u2019s market to GDP ratio stands at 104%.<\/span><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">Inheritance tax, abolished in 1987, should be reintroduced.<\/span><\/li>\n<\/ul>\n","protected":false},"excerpt":{"rendered":"<p>Flawed fiscal policy favours the affluent Context The top 1% income earners received 6% of the total income in the early 1980s; it went up to 15% in 2000 and today stands at 22%. Data from India\u2019s Income Tax department showed that 59,830 individuals reported gross total income more than \u20b91 crore. Over 30,500 individuals&hellip; <a class=\"more-link\" href=\"https:\/\/forumias.com\/blog\/flawed-fiscal-policy-favours-the-affluent\/\">Continue reading <span class=\"screen-reader-text\">Flawed fiscal policy favours the affluent<\/span><\/a><\/p>\n","protected":false},"author":61,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"jetpack_post_was_ever_published":false,"footnotes":""},"categories":[555],"tags":[],"class_list":["post-31863","post","type-post","status-publish","format-standard","hentry","category-test-1","entry"],"jetpack_featured_media_url":"","views":{"total":0,"cached_at":"","cached_date":1704929924},"jetpack_sharing_enabled":true,"_links":{"self":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/posts\/31863","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/users\/61"}],"replies":[{"embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/comments?post=31863"}],"version-history":[{"count":0,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/posts\/31863\/revisions"}],"wp:attachment":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/media?parent=31863"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/categories?post=31863"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/tags?post=31863"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}