Thursday, July 06, 2006
Taxation - Rich to Poor?!
I have observed many young rich folks (ideally software Engineers), when they get their first job salary in five digit numbers, open their wings broadly and fly over luxury. They don’t even care about their savings or taxes for initial months. They may not worry till for first year unless they get bored about their luxury. I have also seen people who feel savings / tax reductions are complex subjects to understand and they don’t show interest on that. There are few exceptional cases, they may drop some portion to charity right from their first income. Some are so philosophical saying that, atleast it goes to the government only. Let Government do the best to the poor. They may optimize their ignorance with a philosophy!
Let us leave all above people for time being and take the last philosophical cases as it is interesting. These people should understand that their contribution is not going for the needy directly. It goes with lot of bureaucracy overheads. Some peanuts from our share go to infrastructural development or needy poor after paying salaries for all government employees. It is from your salary, Government employees are paid but still they will not respect youL. To do more evil to this, our taxation law is also another problem. The concept of tax is brought to collect from Rich and share it to poor. Whom do you think are more taxed? It is not big company owners whose turnover are in lakhs. It is these educated upper middle class (i.e. Software Engineers). Rich people with companies can spend to all their needs and pay tax to the rest whereas our employed middle class people have to pay tax for their income first and spend for the rest. I don’t know whether these philosophical people might have thought about all these scenarios before they postpone to save / tax savings through charity. If not, please think it over.
So, very small amount is going to poor from rich. Also with sales tax, service tax etc, poor is also forced to pay to Government as rich. So there is no difference in terms of rich and poor for Government. Oops….
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2 comments:
I know what you mean. my friends parents are super wealthy. Last weekend they spent 1 million in Europe!
Writingchkkk, are you favour or against with the content he is talking?
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