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Unless the government cleans up its act, people will keep trying to store their wealth in other mediums and will avoid paying taxes. I question the premise that
by rm2889 10y ago
Unless the government cleans up its act, people will keep trying to store their wealth in other mediums and will avoid paying taxes. I question the premise that all untaxed money is evil based on the past performance of any Central/State/City/Municipal government in India. The nature of the Indian bureaucracy is such that it induces massive waste of tax payers' money at every stage of Government. For a tax payer from a game theoretic perspective, there is a rational basis for hoarding untaxed assets since to get things done in the bureaucracy, people need to bribe officials in cash or kind anyway. I wonder how people here feel about this thread after observing two weeks of the war against black money. https://news.ycombinator.com/item?id=12902817 https://news.ycombinator.com/item?id=12902817
- gnipgnip 10y agoConsidering that India's state is essentially a rent-seeking colonial state, I don't believe it has much legitimacy. Then again, considering the large number of Govt. employees suckling at its teat, it's likely never going to go away. The local-minima is far too comfortable for those that matter.