In certain nations, a small group of people have significantly great yearly earnings. They should be obliged to pay much more rate of income tax. I vehemently agree with this statement because it will result in the decrease in hoarding of wealth and bring much needed revenue to the governments.
Firstly, the concentration of income in the hands of cliques can have adverse consequences for a state. While some may mistake this as progress, it may result in “crony capitalism” that seeks to subvert democratic institutions. How is this feasible? Such groups tend to lobby governments to formulate policies in their favour at the expense of the public good. For example, any such cabal can get clearance for a factory that damages environment by bribing politicians.
Secondly, levying a higher rate of tax on such people would bring much needed revenue to the government, which it can use for welfare purposes. They can also be compelled by the government to engage in extensive Corporate Social Responsibility(CSR) activities. If they fail to comply with such directives, the state can impose hefty fines on such establishments and individuals. The government should demonstrate its ability to implement such measures and the public should always ask for accountability. For instance, the state should make the steps it takes against such cabals public on its websites.
In conclusion, small groups of people who have extremely high annual incomes should be taxed at a higher rate as it will prevents the concentration of money in the hands of a few and also bring much needed revenue to the state.