One of the advantages I have as a blogger over the Finance Minister of India, is that I can come up with outrageous suggestions. Like this one ...
The expected revenue from Income Tax is 9% of the total government income. I do not know how much the Income Tax department spends to get this 9%. I was wondering if the Income Tax can be abolished all together. Instead increase taxes on non-essential, luxury items. Believe me the economy will boom like it has never before. Some money will go into buying luxury items; the rest will go into savings and investment. And I do believe that the government will more than recover the 9% lost out. Actually this may even wipe out the 38% debt (of the total expected income for this financial year) the government is under.
Now that is not really outrageous, is it?
Economists may argue that this will lead to a spiraling inflation. Will it, really?