A survey conducted by a newspaper revealed that 82% of taxpayers have never cheated on paying taxes, while 13.6% have cheated just once or twice. 85.4% will report and pay tax on interest from fixed deposit, if tax had not been deducted by the bank, but 58% of people will not pay taxes if they can get away with it. That is astonishingly honest because 19.7% think that tax laws favor the rich and 53.7% think that they favor dishonest people, making 73.4% of taxpayers who feel that the laws are unjust. It maybe that people do not follow business news because they would realise that the government may have to write off Rs 7 trillion in corporate taxes. Although this figure covers disputes over several years it is still huge because the entire direct tax collection for the last financial year was Rs 7.48 trillion, which includes income tax, wealth tax on individuals, capital gains tax and corporate tax. Clearly, rich fellows are getting away with not paying their fair share. A large number are paying because of fear of tax officers, with their unlimited power to assault and harass citizens. This is like Delhi Chief Mininster, Kejriwal claiming huge support for his perverse odd-even policy because people stayed at home for fear of fines of Rs 2,000. One of the greatest desires of all Indian politicians is to widen the tax base, which means get more people to pay income tax. Why? Because only 4% of all Indians file tax returns and only 1% actually pay any tax. More than half, 54%, of those who filed tax returns did not earn enough to pay any tax. Why? Because there are too many people competing for jobs which brings down their bargaining power. Comparing with other countries is of little use. In China personal tax rate goes up to 45% but taxes start after 3,500 renminbi per month, which converts to about Rs 35,000 per month, or Rs 420,000 per year. Whereas in India we are allowed Rs 250,000 per year, which converts to $3706 per year, or about $10 per day. That maybe 5 times the World Bank's absolute penury level of $2 per day but it is nowhere enough for a man to pay rent, feed his family and pay school fees for one child. As for Scandinavian countries we cannot compare at all because the govenrment provides for free education, healthcare, pension and old age care for every citizen, whereas in India taxpayers get nothing in return for the taxes they pay, whereas those who do not pay any taxes can get free education in private schools, almost free food and free healthcare in private hospitals, because they have Below Poverty Line cards. Trouble is there is a lot of similarity between Rahul Gandhi and Prime Minister Modi. Both are bachelors and both have not worked to support a family. Modi went into politics from selling tea while Rahul Gandhi owns the Reserve Bank. No wonder all US Presidents have been married. On the other hand not having criminal children is good for us. Can't have everything, can we?
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