BJP asking right questions: Abolish all taxes barring IT and GST

The BJP has started asking fundamental questions about fiscal policy. If we're willing to flirt with iconoclastic ideas, there are good foundations for two propositions: It would be wise to cut total expenditure of the government to 12 percent of GDP. There are only two sensible taxes -- income tax on individuals, and GST. All other taxes should be eliminated. That leaves the problem of building sound tax policy and tax administration through which the income tax on individuals and the GST are set up, that yield revenue of 12 percent of GDP.

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