Proposal to Replace India’s Income-Based Tax System with a Wealth-Based Tax System
Proposal to Replace India’s Income-Based Tax System with a Wealth-Based Tax System Introduction: The current income tax system in India imposes significant financial pressure on individuals, especially for middle and lower-income groups. The burden of income tax is often felt most by those who are struggling to cover basic living expenses, leaving little room for savings or investment. In light of this, we propose a shift from the existing income-based tax system to a wealth-based tax system. This approach focuses on taxing accumulated wealth—such as savings, gold, property, and income-generating assets—after meeting all essential living expenses and holding them for over a year. The goal of this proposed system is to alleviate the financial burden on individuals, especially those with limited incomes, while ensuring that individuals who have accumulated significant wealth contribute fairly to the welfare of society. The Rationale for a Wealth-Based Tax System: Easing the Financial Bur...