Sunday, January 29, 2017

Shouldnt the Taxation be done differently ?

In todays date, when all the eyes are set on the budget 2017, and the main component, which everyone is looking for is a cut in the taxation rates and the slabs. Well, thats something which even I have been looking for. However, just reducing the taxation, will it not hamper the amount the government will eventually have for the various programs ?

Rather than just reducing the tax rates for the majority of the salaried and other tax payers, why cant we have a much lower slab, which will make sure, a huge number of people pay a small amount of tax.

Say, if one is earning around 1 lakh a year, currently this person will not be paying any taxes. And I suppose a huge number of people are in this bracket. So why cant the government charge a very nominal tax amount say 1% or 0.5%. When we have huge numbers of these, will it not help everyone.

Why should only the middle segment people who are primarily in the salaried class bear all the wrought, when dealing with taxes.
When we have more and more people paying taxes , though very small amount, it will be better for the overall growth of the country , rather than taxing only a few.

The bigger and the more important part of taxation, is when, the amount paid, should be reflected in the amenities which is provided for the people. Only then every one will eventually like to pay

I do hope that, this does happen eventually.