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Inheritance Tax: Economist Gautam Sen has hit back at Sam Pitroda's remarks regarding inheritance tax at the Indian Overseas Congress. He said, 'The first thing is that there is no inheritance tax in America. They don't have inheritance tax, it's called estate duty and gift tax. It paid for 0.14% of these deaths in the US by 2022. Out of 2.5 million people across America, only 0.14% i.e. 4000 people are subject to property tax. Most estates are exempted from this. Because the exemption limit is very high i.e. 13.6 million dollars. On the other hand, the money of the rich is held in de facto trusts. Therefore the example of America is not at all good for India.
The proposal to survey all households and businesses is impractical for several reasons. In India, 2.4% or slightly less people pay their income. I think the number of people with high wealth in that group is not more than 12 crores. You have to close down their businesses to force them into inheritance tax. This means that economic chaos will spread in the coming years. Whoever thought of this idea was not thinking very realistically. What we have now is a vast improvement over what was before.
We have an incredible combination that can almost never be achieved. It is a combination of infrastructure with wealth creation and redistribution through investment. So even if we get something, it is not a wise idea. It will take you away from your children and grandchildren. Meanwhile, if anyone wants to do this then he is not a friend of India. India's political and economic chaos will provoke countries like China-Pakistan into immediate aggression as they wait for an opportunity to settle scores with India and occupy Indian territory. Therefore, anyone who wants to do this is not a friend of India.
What did Sen say on the statement of Congress leader Rahul Gandhi?
On Congress leader Rahul Gandhi's wealth redistribution idea, economist Gautam Sen said, 'It will not work in India. About 12 crore people have assets worth more than Rs 102 crore but almost all of them are invested in their businesses. So you have to destroy their business to take away their property. The economy will stabilize. My argument is that the number of people who own property is less than one and a half percent of the total population. Meanwhile the total tax revenue you get by removing all of them will not be enough to improve the lives of the remaining 98-99%. He would just be a victim. You will have to do this survey every two years. 'We have the best redefinition of the real thing from development in the last 10 years.'
