Taxes ????

With the Indian Union budget supposed to be tabled in parliament on the 28th of FEB, the media has been covering aspirations of industry and man on street.....

Seeing all this I had an idea. Why not abolish income tax altogether? Yes really why not. What we can have in it's place is an expenditure tax. Income earnings should be totally delinked from Income tax. With it's millions of rules and regulations which actually benefit people in the top most bracket.

An expenditure tax in my view would be the best idea possible. You can earn as much as you want without the thought of losing the same to taxes... You can save as you want, plan your future.. etc. Only when you decide to spend the money should the goverment have any say. This will resolve a lot of issues, like black money, underdeclaration of income, over declaration of expenses by corporates. The reason goverments would not like the idea is that with income tax they collect the money in present. In fact the rule should be that anytime you decided to spend/ withdraw money you will be taxed 20% right from your account with the banks depositing the same with the goverment in our name. This will reduce a lot many procedural hassels and expenses both from the goverment side and general public. With the banks having the IT infrastructure and money to implement it while levying a small fee to the goverment. They inturn get to keep money with their bank.

All tarnsactions between individuals/ Businesses etc should be recorded by some form of smart card. We may not need papaer money at all . Think about it ........
If you have any concrete ideas I' am all ears and mail ...