Tax elite to reduce inequality: Thomas Piketty


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Puja Mehra

“The Chinese Communist Party has been much more successful than the democratic and parliamentary Indian elites in mobilising significant resources to finance a strategy of social investment and public services.”

“I hope the Indian elite will behave much more responsibly [in paying more taxes] than the western elite did in the 20th century,” the French economist tells “The Hindu”.

French economist Thomas Piketty says he hopes the Indian elite will pay more taxes on wealth and income, as the country’s tax-to-GDP ratio of less than 11 per cent is insufficient to meet its challenges of inequalities. The aim should be to evolve the ratio towards 30-50 per cent, as in the U.S. and west European countries.

“India has zero wealth tax… I hope the Indian elite will behave much more responsibly [in paying more taxes] than the western elite did in the 20th century,” he told The Hindu in an interview.

Drawing a comparison with China, the author of the best-seller Capital in the Twenty-First Century said: “The Chinese Communist Party has been much more successful than the democratic and parliamentary Indian elites in mobilising significant resources to finance a strategy of social investment and public services.” India’s public health system has a budget of barely 0.5 per cent of GDP, compared with almost 3 per cent in China.

See the link below:

http://www.thehindu.com/news/national/thomas-piketty-tax-elite-to-reduce-inequality/article8136568.ece?w=alauto

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Editor, Namasthe Telangana Daily, Hyderabad
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