More Tax...

Article;

Panel Asks Govt to Make Strenuous Efforts to Widen Tax Base


Comment;

Widening tax base will bring more people under tax burden and will increase tax collection as have been said in the article. For the Indian-Economy where a third of population lives in poverty we need more taxes not less so that we can spend more on welfare schemes. The need is to widen tax base and/or increase tax percentage on each slab. The purpose is to reduce poverty by eliminating inequality of income and by more symmetrical distribution of income even by a more progressive tax system. Many argue that we can even consider direct redistribution of income by means of taxation. India's tax percentage on each slab are lower than many countries like the US where people are protected against unemployment and are covered under health care, all of them. I hope INDIA too would like to protect its population against uncertainty and cyclical unemployment. Moreover taxes are an important tool to regulate economic cycles. During boom we need to reduce demand by increasing taxes whereas during bust we need to spend more for which we need resources accumulated during the highs. The purpose of taxes is to provide stability (any) to the economy by maintaining reserves...

**Previously i misunderstood widening with narrowing and narrowing with widening...