January 26, 2016 No.3
https://www.facebook.com/mehtarahulc/posts/10153252868036922
Dear recallists , do you agree with following economic law-draft? And if not, what flaws do you see?
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(I had asked this question 15-dec-2015 . Here is link to the Q and some answers ---https://www.facebook.com/mehtarahulc/posts/10153177541766922. And below is my answer
.
The proposal goes as - remove all taxes, and impose say 5% wealth tax (or a rate equal to rent rate) on all forms of wealth, above a limit say Rs 2 crores. And then use the money for all govt expenses and distribute the remaining money equally amongst ALL citizens. IOW, wealth tax will not only be used to pay for all govt expenses , but also remove poverty.
.
The above proposal is from Roshan Lal Agrawal , Bharat Gandhi athttps://www.facebook.com/votership , and many more etc, They call it "nagrik bhatta" or "economic justice forum" . Many groups such as "aarthik nyaya manch" , "bharatiya nyay manch" are supporting this proposal.
.
The proposal difers from our proposal and has similarities, As far as minerals, spectrum and govt land goes, we too agree on imposing a rent , which will be divided equally amongst all citizens. But for PRIVATE wealth, we have proposed ONLY a tax to cover govt expenses and NOT for distribution amongst citizens. Also, we believe that income tax is must for proper wealth tax collection.
.
So please leave aside the fact that income tax is necessary for wealth tax collection. That point is technical, and not political. The political part we disagree with is -- we oppose wealth tax on PRIVATE wealth for purpose of distribution of money amongst citizens.
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So the QUESTION before us recallists is ----- what is "WRONG" if tax is imposed on PRIVATE wealth to obtain money to distribute it amongst citizens to reduce poverty?.
.
Pls reply above question./ Pls avoid language of "fundamental rights" , "natural rights" etc. And see if you can give a logic which is also free of words "morally right" etc etc. IOW, can you give a MATERIAL explanation for or against this proposal.
My reason on why I oppose this wealth tax on private property for distribution.
.
========
.
MY ANSWER
-----------------
.
First , lets put parts where we agree. We at Right to Recall Group support equal distribution of royalty from minerals / spectrum / waters and also support equal distribution of rents from govt plots.
.
But when it comes to private land, we have proposed ONLY wealth tax to cover govt expenses. And NOT proposed any WT for purpose of distribution amongst citizens.
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Here are damages that "wealth tax for distribution" can cause.
.
1. Say the proposal comes into India today. Then tax rate on wealth in India will be much higher than tax rate on wealth in USA. In such case, those who are generating wealth and income from their own merit, and not due to natural resource ownership, will leave India and settle in USA. And along with their departure, we will lose engineering skills etc needed to make weapons, and medical skills needed to cure our patients. So strength ratio of India / USA will worsen
.
2. Now many say that --- once this system (of collecting tax from private wealth , and using tax for govt expenses and well as distribution) comes in India, this system will comes in USA as well as all countries in world.
.
3. Lets say ALL countries have adopted this ArthikNyaya proposal. In such case, the apex 1% of Indian citizens will all move to one place, say Goa for example. And then they will declare Goa as separate nation and separate. Now tax rate in Goa will be lower as they are collecting wealth tax ONLY to run govt expenses and NOT for distribution. So more and more wealthy individuals in India and across world, whose wealth is due to merit and not natural resources, may prefer to move to Goa to lower tax on them. Now since these people have more merit, they will have more engineering skills and so better weapons. And so they will dominate / enslave India and rest of the world as well.
.
3A. IOW, even if all countriesadopt "tax private property for distribution" law, then it doesnt rule out possibility of men with high engineering / medical skills moving to one region and creating a separate country on their own. And that country will have more skills and so more weapons, and so will not only survive but also dominate. (eg Israel is dominating over Arab world)
.
4. And if such people wil high engineering / medical / arts skills from India move out to form separate country, then average citizen in India would lose.
.
Now consider the proposal of imposing tax on wealth to run police, courts, military etc. If that tax is removed, then elitemen does gain in short run but loses in long run because criminals and foreign soldiers will become stronger and devor his wealth. So whether the elitemen likes or not, the elitemen will agree to put with wealth tax to run police, courts, military. And the elitemen will also see that running police , courts and military need skills in huge part of population, and so he will also agree and put up with tax for purpose of basic education. All in all, whatever wealth tax that is minimally needed to protect wealth and run business will get tolerated. But any more tax than minimally needed, and elitemen will either look to leave country or create a new country.
.
So IMO, tax on private wealth for purpose of distribution is NOT viable.
https://www.facebook.com/mehtarahulc/posts/10153252868036922
Dear recallists , do you agree with following economic law-draft? And if not, what flaws do you see?
.
(I had asked this question 15-dec-2015 . Here is link to the Q and some answers ---https://www.facebook.com/mehtarahulc/posts/10153177541766922. And below is my answer
.
The proposal goes as - remove all taxes, and impose say 5% wealth tax (or a rate equal to rent rate) on all forms of wealth, above a limit say Rs 2 crores. And then use the money for all govt expenses and distribute the remaining money equally amongst ALL citizens. IOW, wealth tax will not only be used to pay for all govt expenses , but also remove poverty.
.
The above proposal is from Roshan Lal Agrawal , Bharat Gandhi athttps://www.facebook.com/votership , and many more etc, They call it "nagrik bhatta" or "economic justice forum" . Many groups such as "aarthik nyaya manch" , "bharatiya nyay manch" are supporting this proposal.
.
The proposal difers from our proposal and has similarities, As far as minerals, spectrum and govt land goes, we too agree on imposing a rent , which will be divided equally amongst all citizens. But for PRIVATE wealth, we have proposed ONLY a tax to cover govt expenses and NOT for distribution amongst citizens. Also, we believe that income tax is must for proper wealth tax collection.
.
So please leave aside the fact that income tax is necessary for wealth tax collection. That point is technical, and not political. The political part we disagree with is -- we oppose wealth tax on PRIVATE wealth for purpose of distribution of money amongst citizens.
.
So the QUESTION before us recallists is ----- what is "WRONG" if tax is imposed on PRIVATE wealth to obtain money to distribute it amongst citizens to reduce poverty?.
.
Pls reply above question./ Pls avoid language of "fundamental rights" , "natural rights" etc. And see if you can give a logic which is also free of words "morally right" etc etc. IOW, can you give a MATERIAL explanation for or against this proposal.
My reason on why I oppose this wealth tax on private property for distribution.
.
========
.
MY ANSWER
-----------------
.
First , lets put parts where we agree. We at Right to Recall Group support equal distribution of royalty from minerals / spectrum / waters and also support equal distribution of rents from govt plots.
.
But when it comes to private land, we have proposed ONLY wealth tax to cover govt expenses. And NOT proposed any WT for purpose of distribution amongst citizens.
.
Here are damages that "wealth tax for distribution" can cause.
.
1. Say the proposal comes into India today. Then tax rate on wealth in India will be much higher than tax rate on wealth in USA. In such case, those who are generating wealth and income from their own merit, and not due to natural resource ownership, will leave India and settle in USA. And along with their departure, we will lose engineering skills etc needed to make weapons, and medical skills needed to cure our patients. So strength ratio of India / USA will worsen
.
2. Now many say that --- once this system (of collecting tax from private wealth , and using tax for govt expenses and well as distribution) comes in India, this system will comes in USA as well as all countries in world.
.
3. Lets say ALL countries have adopted this ArthikNyaya proposal. In such case, the apex 1% of Indian citizens will all move to one place, say Goa for example. And then they will declare Goa as separate nation and separate. Now tax rate in Goa will be lower as they are collecting wealth tax ONLY to run govt expenses and NOT for distribution. So more and more wealthy individuals in India and across world, whose wealth is due to merit and not natural resources, may prefer to move to Goa to lower tax on them. Now since these people have more merit, they will have more engineering skills and so better weapons. And so they will dominate / enslave India and rest of the world as well.
.
3A. IOW, even if all countriesadopt "tax private property for distribution" law, then it doesnt rule out possibility of men with high engineering / medical skills moving to one region and creating a separate country on their own. And that country will have more skills and so more weapons, and so will not only survive but also dominate. (eg Israel is dominating over Arab world)
.
4. And if such people wil high engineering / medical / arts skills from India move out to form separate country, then average citizen in India would lose.
.
Now consider the proposal of imposing tax on wealth to run police, courts, military etc. If that tax is removed, then elitemen does gain in short run but loses in long run because criminals and foreign soldiers will become stronger and devor his wealth. So whether the elitemen likes or not, the elitemen will agree to put with wealth tax to run police, courts, military. And the elitemen will also see that running police , courts and military need skills in huge part of population, and so he will also agree and put up with tax for purpose of basic education. All in all, whatever wealth tax that is minimally needed to protect wealth and run business will get tolerated. But any more tax than minimally needed, and elitemen will either look to leave country or create a new country.
.
So IMO, tax on private wealth for purpose of distribution is NOT viable.
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