We want infrastructure but no taxes!

Mcadambi,

Thanks for posting this.

The FKCCI president in Karnataka also bemoans the revised SAS property tax rates as too high. What a shame !

We need some urgent reforms here to improve property tax collection. Bangalore also has the dubious distinction of being the city with lowest property tax collections amongst the six metros. Even cities like Pune & Ahmadabad have higher tax collections.

I am not sure if such a differential taxation system will work because those that live in the better off areas with good, developed facilities will be paying lesser than areas that have poor facilities.

Older areas are also closer to the city centers, & newer areas with poor infrastructure are generally further off.

So, will this not be an anomaly ?

I think the better the facilities, higher the taxes is the correct way, & not the other way round.

Mcadambi,

Such cases would be there, but few & obviously exceptions cannot be made for anyone.

IT workers or those with higher incomes will choose to live in areas with better facilities, & those with lower incomes will have to move out to areas that are commensurate with their affordability - unfortunately, this is probably the only way it will work.

Take Defence colony, Indiranagar, Koramangala or Jayanagar - these areas were affordable previously, but now, with high costs & correpondingly high taxes, it can be expensive living in any one of these areas, but taxation must also be higher - this cannot be helped.

On the other hand, if areas with poor roads, poor services, etc. have to shell out heavily since infrastructure has to be upgraded, most would not be able to afford since most would be from lower middle classes with limited incomes - such people would be much higher by numbers.

I know I will get a ton of hate mail for bringing in different things into the discussion but they are all related so I am bringing them up here… I am quite surprised at the discussions going on in this forum. Increase taxes?? Art Laffer style supply economics? These theories are exactly the reasons for the American economy now going bust: http://in.youtube.com/wat... What we need is less government in all spheres except security and general administration.Taxes should be less if anything on the end customer. Specifically in India, we need to get out of the clutches of a central government having all the economic powers and weak state governments.

We have some of the best businesses in Karnataka and most of every rupee remitted as taxes goes to the center and the state governments are left to go with a begging bowl for everything to the center starting from seeds, fertilizers, rails, language status and what have you. Increasing property taxes is not the solution but demanding a free economy with powerful small states and a lean and mean central govt is the necessity. Also all personal income taxes at source for individuals should be eliminated and corporate taxes, fair tax system on goods/assets/services purchased for EVERYONE should be adopted (Itemized taxing so that government spends only on those heads). Please read about the Austrian economics for the real deal. http://mises.org/ http://www.lewrockwell.com/

Even our own history teaches us to have low taxes for a prosperous people-Read Mahabharatha Shanti Parva Bheeshma to Yudhistira and Chanakyas Artha shastra. In many of the forums in this site as well as others we read issues in people wondering why public sector/government entities fare badly with a lot a corruption starting from the lowest levels whereas private companies having lesser corruption at lower level and mega frauds at the highest level. If observed these high level frauds are generally in connivance with the government subverting the laws. The decay in the governments and the general public in turn over time is because we have killed the meritocracy system and in name of castes not allowed people with stuff to thrive and Ayogyas to thrive. So trying to solve problems like police corruption by giving them guns or increasing the salary by 1000rs is not going to take us anywhere anytime soon( A reason given for increased taxes).

The sooner we realize these the better.

Thanks.

Murali,

I think you have confused the concept of the forefathers of US who wrote their constitution: the concept of less government does not necessarily mean kicking out people from Washington and just resucing their numbers. The intention is to have the government powers and functions curtailed to the required minimum and increase them if absolutely required to where their functions are required and necessary. So kicking out people from Vidhana Soudha and emptying Vikasa Soudha is not the need or requirement. Curtailing their functions to only their functions is what is desired. For instance in Karnataka( as well as India), Governments get into everything like religion(Mujrai, Haj boards, Evangelist activities). They even give grants for private religious instituions from tax payer money.Charity should always be private not from public money. Managing industries,railways, buses, Education etc are other sure fire recipes for disaster-recall the innumerable scandals in these areas, latest one being Bisi Oota, Cycle scandal. But what we require is good, atleast somewhat upright politicians who will be good lawmakers. Letting private people to go amuck will otherwise create private monopolies rather than the desired capitalism.

The other point you mentioned about all the responsibilties being on us is absolutely true for a true democracy not for us. It is accepted from ancient times that those who choose between lesser of two evils concept end up always with evil only. I do not agree with people who say you have to vote on election day in India(or US)and that is our only prime responsibility. We have seat reservation system where if you are from certain castes you cannot represent people and contest elections. I know one of my relatives who wasted his whole political life in BJP/Sangh parivar but never got a chance to contest because of these silly rules. Our responsibilty and remotely possible success can be only if we war with thoughts, nonviolently.

But honestly, in a lighter vein, I am personally leaning towards UG Krishnamurthy that we are headed for sure disaster... http://www.well.com/user/jct

Thanks,

Venkatesh