Indian Citizen's Sad State - More you Earn, Less you Keep
In India, taxpayers who fall under the 30% income tax bracket represent a small yet significant segment of the population, reflecting the increasing burden on those who contribute a substantial portion of the nation's revenue. These individuals often find themselves navigating a complex financial landscape, where their earnings are heavily taxed while they may not benefit from various social welfare programs and subsidies.
The imposition of up to 28% Goods and services Tax (GST) on purchases further adds to their financial strain, as they are not only contributing through direct taxes but also facing high indirect taxes on everyday goods and services. This dual taxation can lead to a perception of inequity, where high-income earners feel disproportionately burdened compared to those who rely on government assistance programs.
Many taxpayers in this bracket often do not avail themselves of government subsidies such as subsidized LPG, free bus rides, and electricity or water supply, primarily because they do not qualify for these benefits based on income criteria. This creates a situation where they contribute to the economy through taxes while simultaneously feeling disconnected from the advantages offered to lower-income groups. The ongoing financial contributions from this demographic play a crucial role in supporting social welfare programs, yet their lack of access to these programs can lead to feelings of alienation and frustration. As a result, this taxpayer group often perceives itself as a "rare breed," tasked with shouldering the financial responsibilities of the nation without receiving reciprocal benefits.
The imposition of up to 28% Goods and services Tax (GST) on purchases further adds to their financial strain, as they are not only contributing through direct taxes but also facing high indirect taxes on everyday goods and services. This dual taxation can lead to a perception of inequity, where high-income earners feel disproportionately burdened compared to those who rely on government assistance programs.
Many taxpayers in this bracket often do not avail themselves of government subsidies such as subsidized LPG, free bus rides, and electricity or water supply, primarily because they do not qualify for these benefits based on income criteria. This creates a situation where they contribute to the economy through taxes while simultaneously feeling disconnected from the advantages offered to lower-income groups. The ongoing financial contributions from this demographic play a crucial role in supporting social welfare programs, yet their lack of access to these programs can lead to feelings of alienation and frustration. As a result, this taxpayer group often perceives itself as a "rare breed," tasked with shouldering the financial responsibilities of the nation without receiving reciprocal benefits.