India uninc: predatory state pauperises families and small business

Abstract

Given the absolute lack of safety nets, government should not be taxing ordinary households and small proprietorships at all. The absence of superannuation benefits in the household sector and a dramatic rise in educational and healthcare expenses has aggravated the sector's future uncertainties. Also the joint family system is declining. This gets particularly magnified when coupled with the predatory state's tax impositions intended at funding its profligacy, which it implements both through the direct tax as well as the service tax route. The following is an excerpt from R Vaidyanathan's forthcoming book, India Uninc, published by TataWestland). Our focus now turns to the nature and structure of savings by the household sector and its changing composition. Although we have stated this earlier, for the sake of reinforcement and recall, it needs to be pointed out once again that in the government data pertaining to national savings, partnership and proprietorship (P&P) firms, i.e., the unincorporated sector, are included under the household sector. Read more at: https://www.firstpost.com/business/economy/india-uninc-predatory-state-pauperises-families-and-small-business-1331273.html