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comment by cgod
cgod  ·  4343 days ago  ·  link  ·    ·  parent  ·  post: India to Cut Capital Gains Tax
This seems like a strange thing to post on Hubski. It might be good for India's rich and middle class, increase the capital pool a bit. Doesn't really mean much for India overall. The real problems in India economics are barriers to foreign direct investment, a maze of bureaucratic and regulatory obstacles, corruption, the need for MASSIVE increases in infrastructure spending, and the Maoist insurgency.

Maybe you just hope to show the different capital gains regimes in our two countries, letting us know how good they have it in India. I personally don't favor making our tax structure's less progressive, which is what a large cut in capital gains does. Making productive workers pay more taxes compared to people who make their money sitting on their asses watching the ticker tape doesn't seem right to me.

Cutting business taxes in half (or more), eliminating most deductions for business and increasing the tax rate on the highest earners would be a good thing for the U.S. to do, but unfortunately is probably a little to complex for our current political situation. Lack of access to capital for big business doesn't seem to have been a problem in the U.S. for a few decades, if anything our bubble prone economy seems to indicate that it might have been the cause of some of our problems.





cliffelam  ·  4343 days ago  ·  link  ·  
How is it strange? Seems to have provoked some conversation.

I mostly thought this was interesting because it is another sign that India is abandoning even more inherited 'junk' from Nehru.

-XC

cgod  ·  4343 days ago  ·  link  ·  
You think? Singh came into office a firebrand of progressive reform with a market capitalist outlook. India saw really terrific growth over those years. The past few years his administration has lacked the will or desire to push any significant reforms to the economy, even thou there seems to be plenty of low hanging fruit. When faced with populist a populist outcry, like over the decision to allow foreign supermarket chains, he has caved to the isolationist position. I'd say that the Indian government is generally looked on as moribund right now, incapable of making big changes or taking big decisions. A general embrace of Nehruism, closed economics, nationalism, populism seems to rather be the order of the day.