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India's budget said that people earning up to 1.28 million rupees ($14,800) per year will not have to pay any taxes, raising the threshold from 700,000 rupees. The government also cut tax rates for people earning above the new threshold.
I can't say I don't agree with them. This tax cut just implies to normal income, not for the income through capital gains or income from other sources.
They knew that people who are earning around $10k don't pay taxes, because there are many ways to evade them. Salaried people are paying taxes, they'll keep on paying but hardly 10% employed have this much salary.
You can watch the budget announcement here. #872040
...Just watch the final 10 minutes to know how highly this was applauded!
But this doesn't really count as more than 70% population doesn't have the 1/4 of this income.
Instead of these rate cuts, if they announced how they can decrease unemployment, I would also cheer it.
Yeah, income tax cuts are great, but reducing taxes on investments would be better for employment.
I recall reading something about Estonia not taxing profits that are reinvested within the country. Something like that might be worth exploring.
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33 sats \ 1 reply \ @Bell_curve 10h
Doesn’t Estonia have a flat tax? And zero tax on capital gains?
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I don't remember the details and it may have changed. I just remember that they stopped taxing locally reinvested profits (maybe capital gains).
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They are actually trying to tax investments more because they think the biggest money lies there. I'm sorry to say but this government is not different than the previous ones. All want to fill their pockets by whatever means.
Now they are adding an act which will criminalise hiding Bitcoin. If caught, it'll be taxed upto 60%. Can you believe it?