- With the extra revenue, we can create a better and safe environment, provide quality education, build, roads and infrastructure which every nation needs for the development.
- This scheme will help in reducing the wealth gap between the rich and the poor and also in reducing the high-income inequality in the economy.
- Majority of the taxes earned are from the lower classes, rich and corporate are taxed very less and easily get away with it which should be stopped for the sustainable growth.
- The banking sectors need to do something as they are just giving large benefits to large people.
- The rich already have enough money to live a good lifestyle; it won’t be a problem for them if they pay little more tax.
- The Government which will pass the law or bill on increased tax for the rich will eventually lose their voters from the vote bank.
- The highest tax slab is 30% which means almost half of the income of the person goes to the government. Therefore, rather than raising the tax the government should focus on to improve the avoidance of the tax.
- Charging the higher tax rate from the superrich without defining the definition of superrich will again create a problem.
- The agricultural sector doesn’t pay taxes, bringing them into the scenario would earn good revenue for the government.
- India has a huge amount of black money, bringing even the small percentage of black money will earn huge revenue for the government. Rather than just taxing the superrich.
- With more taxes mean less money will go into charity and donations which are the only source of income for many orphanages and shelter homes.
- Less tax means there is more potential for the people to invest in the new businesses and startups.
Situation In other countries :-
- Countries like Sweden, Canada, and Australia have higher tax rates for the rich and are doing well in terms of growth and economy.
- Belgium charges the highest tax in the world i.e.; 54.9%.
- India’s top tax rate i.e.; 30% was set up in 1997.
We need a new taxation system because with the present system we are never going to get enough money from the rich directly because they have lawyers, and policymakers, who by some means save their money in one way or the other so it is better to have a flat tax system. But this flat tax system will harm the lower class more. The main purpose of the country should be to focus on earning revenues, but along with this the superrich also does charity and donations which should be kept in mind. We have a tax system which doesn’t provide much freedom to the businesses to invest. Whichever is the side, the economic crises is going to affect both the rich and poor in the same way.
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