Should the Wealthy be taxed more ? A deep dive into taxation policy
India's taxation policies have undergone many evolutions since independence, shaped by economic demands, social goals, and shifts in the global landscape. Today, taxation in India plays a pivotal role in achieving inclusive growth, while fueling essential public services, infrastructure, and welfare programs. Central to this system is the debate around taxing wealthier individuals and corporations—those who hold a significant share of the nation’s resources. While proponents argue that taxing the wealthy can reduce inequality and fund social services, critics say it stifles investment, limits innovation, and may ultimately drive wealth abroad. The Indian government uses a mix of direct and indirect taxes, with Income Tax and Goods and Services Tax (GST) forming the backbone of its revenue stream. The income tax framework itself is progressive, meaning that those who earn more pay at a higher rate. This structure is, in theory, meant to address income inequality, placing a heavier t...