Taxation, to the extent of enabling the Government to provide essential services is inevitable, but it should not be too burdensome on the real wealth creators. To be equitable its burden must fall on ALL proportionately.
The Indian Income Tax (I.T.) regime is a spider-web of complicated rules that interact with those of many other onerous Duties and Taxes. It is also paid by a very few and its high cost of collection does not justify the tax collected. It is also unreasonable, inequitable and is a double taxation that penalizes the wealth creators and encourages them to move to other, more favorable climes.
Of the many other tax regimes, a tax on Consumption/ Goods and Services Tax (GST), as now made applicable in India is the best and most equitable option. However, it needs to be made more comprehensive and be greatly simplified. It should demonstrate ‘Trust’ in the citizens, even as it calls for proper verification and lays out penalties for defaults.
A good GST regime makes IT and even other taxes redundant and encourages the wealth creators to grow wealth within the Country.
The International Financial System has experienced many ‘Boom and Bust’ cycles… many financial analysts have written many analyses about the ‘root cause’… as the ‘root cause’ is differently identified each time, …perhaps each such ‘root cause’ is not actually the real ‘root cause’ but only an effect symptomatic of a more fundamental cause.