Reduce Tax, Increase CSR- A Way to Integrate the Rich, the Poor, and the Society at Large

Jan 18, 2023

Is there a better way of transferring from the income generators to the destitute that can integrate the society rather than dividing it?

The government has the responsibility of ensuring the overall well-being of its citizens. They have to defend the boundaries of the state, develop internal infrastructure, maintain law and order, provide public utilities and ensure the welfare of the poorest. To fulfil this mission, they need resources. Hence, they take a certain portion of the income of its citizens which we call “taxes”. 

Hence, the government is basically collecting contributions from the income generators and the wealth creators of society and reallocating them for the welfare of society. But somehow this fact seems to have been lost in the minds of the people.

There is growing “anti-rich” sentiment in society as the contrast between the ‘haves’ and the ‘have nots’ is increasing. But this is not healthy for the economy or the society at large. We as a society cannot prosper if we do not celebrate someone who is financially successful.

I attribute the typical ‘anti-rich’ sentiment to the old saying ‘Bada banane ke liye galat kaam karna hi padta hai”. ‘Maybe’ some of the wealth was acquired by unfair means in the past. But now in the new economy, entrepreneurs with skill and talent are getting immense opportunities. Hence, this generalization needs to change.

I have two humble suggestions here:

Firstly, let us recognize and reward the taxpayers for their contribution. Let’s make them the heroes. Let’s give them special social status and privileges. The person paying higher taxes should be celebrated for his contribution. Let’s give them some badge of honour.

Secondly, let us reduce the income tax to 15% and increase the mandatory Corporate Social Responsibility (CSR) expenses to 10%. Even in our ancient scriptures, the ideal rate of taxes has been defined as “aay ka chatta hissa” ie 1/6th of your income. So, let us reduce the rate of taxes to 15-16% and make them directly spend an additional 10% of their income on the welfare of society. This would integrate society rather dividing it. Let’s remove the “intermediary” which is the government in this case.

Generally, citizens of an economically prosperous society are happier and more fulfilled. And the general mindset of our society is equally important if we want to make India “sone ki chidiya” again.

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