by Rahul Chimanbhai Mehta at November 10, 2014 at 06:33PM

Dear recallists, . Thos who are following my status posts etc on wealh tax, taxation issues etc. . I have made following changes in the wealth tax proposal. . I have added a concept called as WTC = Wealth tax credit. . The start value will be taxes a person \ company has paid in past 4 years plus 15% of salaries he has paid in past 4 years. This will include income tax, net service tax, excise, sales tax and vat. . The wealth tax payable next year will be = 3% of market value of wealth above 250 sqft of land and 500 sqft of construction per person, minus 30% of actual salaries paid minus income tax payable - minus WTC. . If the number is negative , then it will become WTC for next year. . So say a person has office worth Rs 10 crore, And in past 4 years, income tax etc he has paid is Rs 30 lakhs. Say this year, his income is zero, The wealth tax credit = Rs 30 lakhs. And wealth tax payable this year will be zero. . For rented property, if the person has been staying there for over 12 months, then for 1 year, the wealth tax will be 30% of rent and later it will be 3% of market value of property . WTC will ensure that if a person has been paying income tax for long, then for rest of his retired life wealth tax on him will be near zero. WTC will not be inherited. And with 3% wealth tax, there is no need for inheritance tax. . But if person has been hoarding land, and generating no income, then wealth tax will force him to sell or rent his rent. . This will bring down land prices and will reduce COST OF DEVELOPMENT, and enable India to develop without FDI. . Here , I must add that SoMoKe oppose wealth tax, and insist on clumsy and regressive taxes like VAT, GST, Excise, CST etc. SoMoKe-andhbhagats do see some merit in wealth tax over GST. But if they support wealth tax, then SoMoKe will look bad. So they also oppose wealth tax and support GST --- India can go hell !! . Anyone who is pro-development will support wealth tax and oppose VAT, excise and GST. The fact that SoMoKe oppose wealth tax and support VAT, GST and excise proves that they are anti-development, and all their development talk is just paidmedia. . Solution I propose to activists is to understand how VAT's "buyer will pay for missing trader's default" clause will ruin small business and promote MNC-owners over Indian businesses. And how wealth tax reduces land prices. And inform more and more voters about these two laws. And order MPs via SMS to remove VAT, GST , Excise etc. This will strengthen the movement to repeal GST, VAT, Excise etc and bring wealth tax, even against the wish of SoMoKe. As movement progress, SoMoKe will use campaigns like Swachchh Bharat and Janlokpal etc to drain energy of activists, and if they fail, they will run to support wealth tax and claim credit !! But all that is distant future. What we can do now,is promote the concept of wealth tax.

by Rahul Chimanbhai Mehta



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