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>Because so much business is done in cash, very few people pay tax on the money they earn. >...The size of this shadow economy is reckoned to be as much as 20%
by omouse 10y ago
>Because so much business is done in cash, very few people pay tax on the money they earn.
>...The size of this shadow economy is reckoned to be as much as 20% of India's entire GDP.
What's been the effect on the economy, positive or negative? What problem is it trying to solve here?
>Curbing tax evasion is part of the agenda for the "aadhaar" scheme, a giant digital database designed to give hundreds of millions of Indians a unique ID, and of the new Goods and Services tax.
Wow, wtf India is getting worse. A unique ID, easier government tracking. Goods and Services Taxes punish everyone who buys things, especially the poor.
- akshayB 10y agoThis does not punish poor, they still have time to open bank accounts and swap the money. This is primarily designed to go after big businessmen who avoid paying taxes and also lot of bad activities like terrorism.
- pyre 10y agoWell, all of the money that moves into the bank accounts will be taxed. Won't the hit on that tax affect the poor more than the rich? Sure the rich might take a larger hit in absolute terms or even relative to the size of the money taxed, but the poor take a larger hit in that the money being taxed may be a life's savings pool (i.e. relative to their overall wealth / net worth).
- serge2k 10y agoGoods and Services taxes are regressive, that hurts the poor.
- quadrature 10y ago> Wow, wtf India is getting worse. A unique ID, easier government tracking. this is not unlike a Scoial Security Number (united states) and serves a similar purpose.
- serge2k 10y agoI never really understood the objection to national ID. Is it really that much worse than state IDs? Tracking can work either way, that seems like a different fight. Companies seem to use the SSN anyway.