Tuesday, June 12, 2007

The Enforcers are deciding a new tax on the escalation of property prices. Apparently property prices go up if infrastructure is improved in an area and they think that people should be taxed on their good fortune. What about the extortionate taxes that we already pay? If sewers are built so that people can have toilets at home rather than defaecate like animals along railway lines is it not what the government should provide anyway? How do taxes help the aam aadmi? Let us take a very aam couple who work as daily labour in construction of houses in Delhi. They live in a slum and barely survive on a combined income of around Rs. 3000 a month. They want to attend a cousin's wedding in Mumbai in three months' time. These days low cost airlines offer cheap tickets even for Rs. 100 if booked well in advance. Unfortunately, taxes being fixed, the price of a ticket becomes Rs. 1000 which means for a round trip our couple will have to spend Rs. 4000 which they cannot afford. Also the tickets are non refundable which means that if for any reason they are unable to go they lose Rs. 4000, a risk which they cannot take. Rajdhani tickets will also cost about the same so the only form of travel they can realistically afford and avail of is in an unreserved second class where they will have sitting room only and no air conditioning. So taxes on things that the Enforcers claim are luxury, actually deprive the aam aadmi from ever enjoying them. Of course middle and upper classes can also avail of such cheap tickets but surely the difference between middle class and aam aadmi is merely what each can afford. Ergo, if taxes disappear aam aadmis will be able to afford middle class lifestyle and automatically become middle class. Problem is they will not need hand outs any more and the Enforcers will lose their hold. Unthinkable.

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