The budget date is near. Where the common man hopes that the government will reduce his tax burden. On the other hand, the second discussion is taking place about whether the country’s Dhankuber will be useful in filling the treasury of the government?
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Finance Minister Nirmala Sitharaman is going to present the budget for the next financial year on 1 February. The common man, who is facing the brunt of Corona and then inflation, is hopeful of tax relief in this budget. In such a situation, will the government impose extra tax or wealth tax on Dhunkubers or say super rich people to fill its coffers? Recently, a debate has started around the world regarding this type of tax.
Oxfam has recently released a report on the wealth of the world and the share of rich and common people in it. Since then there is talk of imposing extra tax on the wealthy.
What is wealth tax on the wealthy?
To bridge the gap between the rich and the poor, there is often talk of imposing wealth tax on the rich. In this, it is said to take some extra tax from the owner of the property above a certain limit. Although the prevalence of this tax is very less.
Experts say that this type of tax cannot be the right way to remove economic inequality. At the same time, its collection has its own challenges.
Wealth tax can increase tax evasion
The Financial Express quoted Professor Satchidanand Mukherjee of the National Institute of Public Finance and Policy (NIPFP) as saying that the right way to remove inequality and poverty is for the government to increase its expenditure and keep the distribution system in place.
He says that if extra tax is imposed on more rich people, then it is possible that they will go to those countries where there are no such taxes. At the same time, some experts believe that such a step can increase tax evasion.
The poverty of the world will be overcome by a small tax on the rich
Oxfam’s report says that after 2020, about two-thirds of the wealth created in the world is occupied by only 1 percent of the world’s rich people. This is double the wealth possessed by 99 percent of the world’s population.
It has also been said in the report of Oxfam that if only 5 percent tax is imposed on these 1 percent people of the world, then 2 billion people can be freed from poverty. Governments are expected to get up to $ 1,700 billion from this tax.
The rich themselves are saying ‘impose tax on us’
Recently a unique sight was seen when many rich people of the world talked about ‘imposing more tax’ on themselves. According to the news of ‘The Guardian’, members of a group of 205 billionaires and trillionaires of the world have asked governments to tax them. So that billions of people can be helped.
Disney’s heiress Abigail Disney, ‘The Hulk’ actor Mark Ruffalo, at the ongoing World Economic Forum in Davos, spoke of imposing wealth tax as soon as possible to remove the ‘horrible inequality’. He wrote a letter in this regard. People from 13 countries are included in this group.
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