March 2, 2015
https://www.facebook.com/mehtarahulc/posts/10152629225616922
SoMoKe's proposal to remove wealth tax is on flawed arguments ---- wealth tax isnt coming .
.
well wealth tax isnt coming because law was NOT implemented at all !!!
.
SoMoKe have made an argument which looks like "policemen arent catching thieves and so lets legaliing stealing !!" He says --- wealth tax collection was low and wealth tax should be scrapped !! Well, wealth tax collection was low because income tax officers were directly or indirectly told NOT to look was wealth tax law violations !!!
.
And in addition, wealth tax law itself was full of loop holes.
.
One property, irrespective of size was exempt from wealth tax. So a family of five can have 5 + one for HUF = 6 properties exempt.
.
one property of HUF of parents and granparents, even if they have passed away, can be exempt.
.
One property irrespective of size can be shown as business property and was exempt.
.
one property of HUF of parents and granparents, can be shown as business property, and will be exempt.
.
All rented property, even if rent collected is near nil was exempt
.
All property where offices are running was exempt
.
All property owned by corporation, trust etc was exempt
.
And so and so forth.
.
IOW, the need of time was to fix the law and create enforcement.
.
But instead, wealth tax was scarpped.
.
Main reason was ---- so that elitemen can hoard unlimited wealth and yet pay no taxes.
.
Between wealth tax, and income tax, wealth tax is LESS bad because wealth tax penalizes hoarders wealth consumers, while income tax reduces income who was productive !! Of course,. both taxes are needed in some ratio.
.
Scrapping wealth tax and increasing service tax is poor idea, which ONLY a SoMoKe-andhbhagat can support.
.
https://www.facebook.com/mehtarahulc/posts/10152629225616922
SoMoKe's proposal to remove wealth tax is on flawed arguments ---- wealth tax isnt coming .
.
well wealth tax isnt coming because law was NOT implemented at all !!!
.
SoMoKe have made an argument which looks like "policemen arent catching thieves and so lets legaliing stealing !!" He says --- wealth tax collection was low and wealth tax should be scrapped !! Well, wealth tax collection was low because income tax officers were directly or indirectly told NOT to look was wealth tax law violations !!!
.
And in addition, wealth tax law itself was full of loop holes.
.
One property, irrespective of size was exempt from wealth tax. So a family of five can have 5 + one for HUF = 6 properties exempt.
.
one property of HUF of parents and granparents, even if they have passed away, can be exempt.
.
One property irrespective of size can be shown as business property and was exempt.
.
one property of HUF of parents and granparents, can be shown as business property, and will be exempt.
.
All rented property, even if rent collected is near nil was exempt
.
All property where offices are running was exempt
.
All property owned by corporation, trust etc was exempt
.
And so and so forth.
.
IOW, the need of time was to fix the law and create enforcement.
.
But instead, wealth tax was scarpped.
.
Main reason was ---- so that elitemen can hoard unlimited wealth and yet pay no taxes.
.
Between wealth tax, and income tax, wealth tax is LESS bad because wealth tax penalizes hoarders wealth consumers, while income tax reduces income who was productive !! Of course,. both taxes are needed in some ratio.
.
Scrapping wealth tax and increasing service tax is poor idea, which ONLY a SoMoKe-andhbhagat can support.
.
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