No case for higher income-tax rates

So, another rich tax? Reports say the government is toying with the idea of bringing in a new income-tax rate of 35% for incomes above Rs 10 crore. Political correctness demands that one mustn't oppose such a move for fear of being called elitist. But political correctness on this is wrong. "Sock-it-to-the-rich" proposals may seem popular, but they are almost never smart. The reality is that high tax rates make for bad policy and end up depressing growth — we can't afford lower growth now.

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