Probably not lower than 25%. See tax rates were as high as 60% when Uncle Nadess was Minister of Finance because we were just emerging from under colonial rule and the country had to be built. From the ground up. And pressing problems solved while diversifying a basket case economy. Treading intelligently, Vishnu was then able to lower taxes by almost 50% because the Labour Party had made the economy a lot more resilient and international conditions were a lot better.
Rama then committed political hara-kiri by irresponsibly reducing them by another 50% and making an incredible number of dumb moves. This has created a multi-giga rupee toohrooh and a string of problems that, unsurprisingly, has stalled the economy.
Xavier has little choice but to quickly increase top tax rates back to at least 25% to avert soon having to increase them a lot more. Like what the French did recently. He might not though because flirting with brutal political extinction may be quite addictive.
4 comments:
French court gives green light to raising top tax rates to 75%. For two years. It's 45% in the UK.
As in Sweden, large tax payers should be allowed to "optimize" only if they agree to dress like this...
Now we know that taxes don’t really hurt growth when they’re at 70%.
Those who devised this system must be laughing now...
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