Taxes are a tool of
redistribution of income to factors of production, mainly labour and capital,
and reduce inequality which have a far and long reaching effects on demand and economy
and is the scope of economics...
The governments have
already tried to unearth black money by politely asking the rich to declare
untaxed income, but it did not change their behaviour...
Even noted economists agree that DeMo is a
short term pain for the long term gain...
DeMo was to end shadow economy or
black money economy which do not pay taxes by curbing the cash use and bring
money to banks, interest rates have gone down after the note ban...
People understand that
it is good for the government revenue and spending on schemes like MGNREGA and
direct benefit transfers...
DeMo has been a success
when viewed from the point of view of limiting corruption and it has almost
full people support...
The purpose of
demonetisation was to bring unaccounted income or black money to the banking
and increase tax compliance... what is wrong with that?
People must pay income
taxes, wouldn''t opposition agree with that...? By limiting transactions in Rs
500 and Rs 1000 notes the government tried to stop black money transactions and
bring money to accounts...
Demonetisation to
digitalsation were not a hit on all the black money, everybody knew people
would not give up easily, black money in cash was just the tip of the
ice-berg... But, would restrict the generation of black money...
It was a signal that
the government won''t tolerate corruption and black money and the move was the
end generation of the black money...
The government showed
that it would not deter take strict action if it is in the favour of image of
the government and of the common-man despite criticism... which showed results
in the UP elections...
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