As you may have recently heard Aaradhya Rai Bachchan (for those living under a rock – daughter to Aishwarya Rai and Abhishek Bachchan) recently got gifted a holiday home in Dubai worth around 54 crores. This was after the mini cooper that was gifted to he on her first birthday. Good for her – am happy for her. The point I am trying to make is a tad different – why not a holiday home in Goa, or Kashmir , or any of the fine place in India ? Blame Chidu (aka Chidambaram) and our politicians ! Why not spend the money in India.
Tax The Super Rich
As we are all aware Chidambaram introduced an additional ten percent taxes on the super rich in this budget. This is in my opinion extremely counterproductive in the long run – forcing the investors and entrepreneurs to set up shop elsewhere. We need to attract those with resources and not drive them away. Not surprising then that people like the Bachchans are buying property in Dubai away from India and the glare of the Income Tax authorities.
Politicians And Election Funding
The focus instead should be identifying sources of black money income and encouraging people to start paying taxes on them with both an incentive tax structure and the threat of imprisonment and heavy fines. Generally just one does not work – both the carrot and the stick are required. Unfortunately all this is not possible without election reform as elections are funded mostly with black money – most MP’s would lose their sources of funding and therefore oppose any such regulation – they in fact would want their funding to be in cash – why ? Read On.
Only in India we have this archaic law by the election commission that you cannot spend more than forty lakhs on electioneering – is this a joke? If someone wants to spend crores that is his fundamental right – as long as he can show where the money came from – we in fact would get a lot of entrepreneurs and technocrats as MP’s this way instead of the usual crooked bunch we are doomed to deal with (those who have black money to spend on winning election beyond the declared forty lakhs).
We have some major issues here – and need some thought put into its resolution starting with election funding reform. Raising taxes is not the answer as We need to make sure that those with resources continue to stay and invest in this country and not somewhere else.
Whats The Future Price Of Gold
Image Source: IANS