⚡ FOLLOW THE TAX TRAIL

If you want to understand why income inequality is exploding in india, don’t look at slogans. Look at who pays the taxes. Under Narendra Modi, the indian state has quietly shifted its revenue model away from taxing wealth and profits—and toward squeezing consumption and salaries. The numbers don’t whisper. They scream.

1️⃣ ₹25.4 LAKH CRORE FROM ORDINARY indians — BEFORE YOU EVEN BREATHE

Do the arithmetic the government hopes you won’t.

• GST: ₹11.8 lakh crore

• Income tax (mostly salaried): ₹13.6 lakh crore

• Total: ₹25.4 lakh crore

That’s nearly 60% of the Centre’s FY26 tax revenue, extracted not from billionaires or monopolies—but from daily consumption and monthly pay slips.

GST doesn’t care how rich you are.
Income tax doesn’t ask if inflation already ate your raise.

This is taxation on existence.

2️⃣ CORPORATES PAY LESS — MUCH LESS

Now compare that to corporate India:

• Corporate tax: ₹10.8 lakh crore

• Share of total revenue: 25.3%

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So while common citizens fund the state, big business gets a discount—and a smile.

This isn’t trickle-down economics.
It’s trickle-up extraction.

3️⃣ THE 2019 corporate TAX CUT: A ₹1.84 LAKH CRORE GIFT

In 2019, the Modi government slashed corporate tax rates from 30% to 22%.

The cost?
👉 ₹1.84 lakh crore in just two years (FY20–21).

What did india get in return?

• No investment boom

• No manufacturing surge

• No job explosion

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Just permanent revenue loss.

The exchequer bled. Corporates smiled. workers paid.

4️⃣ INDIA’S TAX PROBLEM ISN’T SIZE — IT’S CHOICE

India’s tax-to-GDP ratio sits at 11.7%.

Compare that to:

• OECD average: 34.1%

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This gap doesn’t exist because india is poor.
It exists because India refuses to tax wealth and high profits seriously.

The state chose the easy route: tax consumption, tax salaries, tax fuel, tax food.

Courage would have meant taxing capital.
Convenience meant taxing people.

5️⃣ GST: THE MOST POLITE WAY TO ROB THE POOR

GST is a textbook regressive tax.

Why?

• Lower-income households spend a higher share of their income on consumption

• Every GST slab extracts a proportionally larger amount from the poor than from the rich

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Under Modi, indirect taxes now make up ~45% of total revenue, compared to 30–35% in OECD countries.

That difference is inequality, written in policy.

6️⃣ BAILOUTS FOR THE RICH, BILLS FOR THE REST

When corporations struggled, they got:

• Tax cuts

• Regulatory easing

• Loan restructuring

• Public-sector cleanups

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When the poor struggled, they got:

• GST

• Fuel taxes

• Cesses

• Shrinking real wages

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That isn’t reform.
That’s class policy.

🧨 FINAL WORD: THIS ISN’T GROWTH — IT’S EXTRACTION

india doesn’t suffer from a revenue shortage.
It suffers from a political will deficit.

A state that taxes consumption over wealth will always widen inequality.

A government that shields profits while squeezing paychecks will always favor the few.

Call it pro-business if you want.
Call it reform if it helps you sleep.

But let’s be honest:

👉 This is economic fraud masquerading as growth.