Wednesday, February 26, 2014

Do they want all of us to be the Bridge Men of Heston.

If a shopkeeper told us to pay him a certain amount of money, which he would distribute to whoever he pleased, and in return he would give us a little something of whatever he pleased we would create a big fuss, tell others to avoid the shop and may even call the police. But what if we found that almost everyone timidly accepted the shopkeeper's terms and quietly paid up whatever he asked for without protest and that he controlled the police anyway we would look for way to migrate to an area which was more just. The government happens to be like that shopkeeper, charging us huge taxes, distributing the money to buy votes, giving us very little service in return and using its might to intimidate us. That is why anyone who can tries to migrate out of India, even if they are labelled the Bridge Men of Heston for sleeping under a flyover in London. Politicians justify high taxes on moral grounds, arguing that people should not grudge paying high taxes to help the poor because the money is used for subsidies such as MNREGA scheme and giving cheap food. But a Robin Hood government is lethal for the economy. High taxes increase prices of goods and services, kill demand, reduce investment, reduce employment, increase inflation, increase deficits and actually reduce tax collections as the economy stops growing. Car sales have been falling for 4 straight months because of the combined effects of inflation, high interest rates to control inflation and high taxes. In panic excise duty on cars have been reduced in the interim budget. Despite making huge losses airlines are having to cut fares because passenger numbers have been falling. Frankfurt Airport in Germany charges $36.70 as taxes, Vienna Airport in Austria charges $34.60, Toronto Airport charges $51.70 but Delhi charges $60.03 as taxes. Why would tourists want to come here? Now the Airport Economic Authority has asked Hyderabad Airport to stop Development charges on passengers. Presently Hyderabad Airport charges Rs 484 from domestic and Rs 1910 from foreign passengers. After Congress victories in 2004 and 2009 based on promises of free goodies every party has latched. Free electricity, water, laptops and bicycles are passe. One politician is promising one goat and one cow for everyone. At least there will be no shortage of dung.

No comments: