Our tax system should go the ASEAN way

To meet a budget crunch, taxes on income, capital gains and dividends have gone up in the US, and may rise further. This has fed speculation that the Indian budget will follow suit. There is also speculation that Chidambaram will introduce an inheritance tax, as in the US. Some Indian analysts think that soaking the rich will win votes in an election year, though there’s no evidence for this. Other analysts say a high tax on the super-rich will largely be evaded through trusts and other legal forms of tax avoidance, and will not fetch much revenue.

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