Inequality woes: Don’t dismiss Piketty’s advice for India on tax policy
Live MintSpeaking at an event recently, Thomas Piketty, author of Capital in the Twenty-First Century, recommended an ambitious plan for tax justice in India, asking the richest Indians who have gained the most from economic liberalization to part with some of their wealth accumulation to pay for higher investment in public services such as education and health. The very rich, in his view, do not report much income, but a wealth tax of 2% on billionaires would raise a lot of money to fund India’s rickety social infrastructure. India’s chief economic advisor, V. Anantha Nageswaran, who participated in the event, was of the view that such a tax regime would drive capital away. In a recent interaction at the World Knowledge Forum, Nobel laureate Abhijit Banerjee debunked the contention that inequality is necessary for growth and said US growth momentum slowed after its big tax cuts for corporates. India’s low taxation policy is also visible in a reduction in the share of corporate tax as a proportion of GDP from 3.9% in 2010-11 to around 3% in recent years.
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‘India must impose more taxes on super-rich’: Economist Thomas Piketty as top 1% hold over 40% of nation’s wealth
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