#Budget2017 Why we need a Robin Hood now?
As I saw pictures of Halwa ceremony for preparation of budget document on twitter, I wanted to tweet “I avoid sugar intake for fitness”.
Well demonetization was a welcome step and next to it I would expect government to offer transaction based tax instead of direct deduction from salary. Imagine the plight of salaried who directly gets a deduction from the salary unlike a business wherein expenses are incurred before taxes are applied.
UK is already pitching for a Financial Transaction Tax (FTT) called Robin Hood Tax. The Twitter handle is @RobinHood . Mind you this is a proposed tax on the financial system like banking and not on the individuals.
Aimed at solving poverty in developing nations by contributing 25% of the collection and 25% for climate change, UK movement is something we can learn lesson from.
A global good is required and perhaps demonetization and digital transactions were prerequisite for Robin Hood Tax from the system. A small tax on Banks and Financial Institutions of the extent of 0.05% is likely to collect revenue for government which can be used for social cause. Though I do not have a research document to prove its implications but it is a thought process.
As a salaried individual I would like certain expenses to be tax deductible. Expenses such as Education, Utility, Health and household expenses should be deductible while calculating tax to make way for greater possibility of savings.
I somehow feel that most parliamentarians are business class and do not feel the pinch which a single income earner managing a family is feeling. That’s precisely the reason we need a Robin Hood. It is the same class which makes most digital transactions and keeps their balance sheet (Salary Account) clean from any evasions.
The rewards of demonetization has to be felt by this salaried income class. It is not a simple equation of 10%, 20% and 30% income tax but affordability of this class which is actually going to run the economy by spending their hard saved money. Please don’t burden them further by sops under loan regime. Incentives on home loans and education loans have filled the pockets of real estate and banking industry rather than making this class rich.
May we have Robin Hood use his archery skills now?