GOVERNMENT SHOULD IMPOSE HIGHER TAX ON RICH CLASS ?

We (India) have many problem like population, Poverty, Corruption, etc etc if we creat the list the list will be long.  Out of many major problems Unemployment is the one of the main problem of India. This year may government going to charge higher tax on rich people. Following is the current tax slab for General and women. For siniour Citizen first slab is o t 2,50,000/- and rest is similar.

                                                                                                                                                                    

Income tax slab	Tax
0 to 2,00,000	No Tax
2,00,001 to 5,00,000	10%
5,00,001 to 10,00,000	20%
Above 10,00,000	30%

What happen if we Increase tax in rich class

Few experts opinion

Naina Lal Kidwai, FICCI President,

"A higher rate of tax on high income group taxpayers is uncalled for as this would discourage entrepreneurship. It could lead to professionals relocating to low tax domiciles such as Singapore, Dubai or London,"

FICCI recommended that the maximum rate of 30 per be made applicable for an income above Rs 20 lakhs (as against the existing threshold of Rs 10 lakhs).

 Rajkumar Dhoot, Assocham President

"Nowhere in the world this happens. Our opinion is tax them (the rich) but tax them reasonably. They have money and with that money they invest in the country, which generates jobs. The investments from the rich men also give excise duties, sales tax and hence generate revenues also."

Adi godrej, CCI President 

"We have said that any increase in taxes (on rich) will create a negative perception on investment and therefore should be avoided."

The point is do higher rates of taxes lead to HIGHER COLLECTION or lead to a SENTIMENT, which creates a NEGATIVE effect on ECONOMIC GROWTH.

(Source : web site of Economic times)