Inequality is prevalent globally as revealed by the statistics, but tax is a tool that keeps it in check to foster fairness in the society, said Mr. Raman Kant Garg, Commissioner of Income Tax India (Exemption) at AIMA’s 62nd LeaderSpeak Session.
[Excerpts below…]
I would say that Inequality is a major social, political and economic disruptor. Globally, currently, there is a deep rethinking of taxation philosophies and their role in driving immediate economic growth, creating long-term economic capacity and achieving socio-political stability. The debate about balancing between driving growth through lower taxation and striving for equity through higher redistributive taxes is occupying the minds of most economists and policymakers. Since the early 90s, the taxation trend has been towards cutting corporate and personal income taxes to really encourage production and consumption.
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