In most countries, wealth is concentrated in the hands of a select few. While these wealthy people earn a substantially high amount, they do not contribute proportionally to the country’s exchequer. I strongly believe that such group of people should be taxed as per their income so as to lift the country’s economy.
Incidents of a small economic elite class amassing a major share of the country’s wealth is increasing worldwide. Such people earn such high income by paying lower salaries to their employees, whereas taking a disproportionate share of company’s profit as take-home salary. However, these individuals do not contribute proportionately to taxes. They often avail tax-saving schemes like investment in real estate to reduce their tax liability. For instance, entrepreneurs or industrialists in many countries buy new properties in a bid to save taxes. They often keep their money in foreign banks or buy large shares of gold for the same reason. By doing so, they invest their earned money, thereby falling much below their income bracket and pay much less taxes. Thus, the loop of these high earners earning from these investments and salaries continue while making minimal contribution to the economy.
On the other hand, a fair taxation system is the need of the hour. With a robust taxation system aimed at taxing individuals as per their income can drive the country’s economy. Revenues generated from such taxation can be invested in various social welfare schemes as well as creation of job opportunities. For example, Nordic countries and European countries like the UK have a taxation system that percentage of tax payable increases with increase in total income. Such policies help to maintain a high quality of life for every citizen irrespective of their income potential.Furthermore, it enables the government to allocate finances for retirement funds, the socialised healthcare system, and other welfare schemes. This provides a major boost to the economic advancement of the countries.
Thus, in conclusion, I strongly agree that wealth should not be in the hands of select top owners of the country. Rather, high-income individuals should be taxed appropriately such that their contribution can help fuel the country’s growth.