Economist Gautam Sen is furious over the opinion given by Indian Overseas Congress chief Sam Pitroda for imposing inheritance tax in India. He has termed this statement of Sam Pitroda as absurd. Gautam Sen has told that the first thing is that there is no inheritance tax in America. They don’t have inheritance tax, it’s called estate duty and gift tax. Sen has also revealed that in America, 0.14% of the dead have to pay it by 2022. Only 0.14% of the 2.5 million deceased i.e. 4000 people in the entire US are subject to estate duty.
America’s example impractical for India
Economist Gautam Sen said most of the assets in the US are exempt because the exemption limit is very high ($13.6 million). In reality the money of the rich is in trusts. So the US example is not a good analogy for India at all. The proposal to survey all households and businesses is impractical for several reasons. In India, 2.4 percent or less people pay income tax. That group seems to include more than 1.2 million people who do not own personal property, primarily in their own residence. To force them to surrender, you have to shut down their businesses.
Threat of China-Pakistan attack
Gautam Sen has said that if the steps mentioned above are taken there will be economic chaos. “What we have is a vast improvement over what we had before,” he said. We have this incredible combination that has almost never been achieved, wealth creation through investment, combining infrastructure with redistribution. Even if you have something to gain from this ill-conceived idea, you will be taking it away from your children and grandchildren. Anyone who does this is not a friend of India. India’s political and economic chaos would immediately invite Sino-Pakistani aggression as they wait for opportunities to settle scores with India and seize Indian territory. Therefore, whoever wants to do this is not a friend of India.
What did Sam Pitroda say?
Sam Pitroda, president of Congress think tank and Indian Overseas Congress, has advocated imposing tax on inherited property. He said that there are such laws in America. Sam said that in America any person can transfer 45 percent of his property to his children. The government takes 55 percent share. Pitroda said that you have created wealth for your generation. You should leave your property to the public, not the whole, but half, which seems fair to me. He said that there is no such law in India but such a rule should be made here also.
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