Income Tax should be minimum for a country to grow
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Income Tax should be minimum for a country to grow
Tags: Income Tax, Finance

This has been a statement of debate for several years now.

In olden times, Kings oe Rulers used to take a cut from profits earned by common people to run the country and to keep them safe. Today, the Government does the same in the form of Taxes, but there is a group of people that agree to the fact that Income Taxes should be at their minimum to allow people to have some cash in hand to invest or buy new things in the market.

I believe this is a great idea as common people would have more income in hand, because of which they can actually spend more money by purchasing cars, bikes, and houses, and hence they will be indirectly paying taxes in the form of Value Added Taxes or GST in India.

What are your opinions about the same? Do you think that Countries should not have heavy Income Tax and that indirect taxes should be used to get money for Government processes?

Author: Mikhail
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Comments:
Neha In India at least, the government should have kept a tab on the Income Tax that it collects, because its already high, and I also believe that having low to no income tax actually earns more money to the government rather than charging a higher income tax and making lives of residents miserable. I don't know why government can't understand that someone who creates an FD is not that much rich that can afford to pay taxes on interest gains. :(
Svetlya I didn't understand, how does reducing or zeroing down Income Tax allows government to make more money?
Suhul Following this thread to know more. How on earth is it possible? But I believe there should be reduction on taxes on capital gains as well ...
Mikhail Hi Svetlya, reducing Income Tax or making it Zero increases the spending power of the working class, because of which they buy more products and services, hence more GST and VAT are collected by the government. Following this method, the government can fetch more earnings via indirect taxes like VAT and GST, etc. Hope that answers your question!

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Income Tax should be minimum for a country to grow
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