The great Indian taxpayer is an elusive creature

There is a very elusive species of creature in India. It works very hard everyday, day and night,sometimes more than 14 hours a day for its food and family. Everyday is a work day, hardly any rest. It also suffers most of modern lifestyle induced sickness. The country, draws significant growth from the hard work of this little species, and ultimately rewards it almost nothing in return.

This species is called the great Indian bustard tax-payer.

I have always known of the hard life this species lives. It does not live, it simply survives. But the data to correlate and breakdown its sad state was buried undred thousand page reports prepared from half informed forms. But recently, there was a nice article summarising its pitiful state.

The salaried income tax payer in India often feels cheated. “What are my taxes being used for," he often asks himself. The roads continue to have potholes. The traffic never ends. The public transport system never seems to expand fast enough. The healthcare system is non-existent. The legal system takes years to give a judgement. The police are corrupt, and so on.

Read on, and pass further into depression.

A few jaw droppers from this piece:

A small portion of India’s salaried population pays the bulk of its individual income tax, which gets redistributed to others and doesn’t benefit the taxpayers that much. In the process, it drives them away from the Indian state. At least, that’s the feeling going around.

“If the state’s role is predominantly redistribution, the middle class will seek—in professor Albert Hirschman’s famous terminology—to exit from the state. They will avoid or minimize paying taxes; they will cocoon themselves in gated communities; they will use diesel generators to obtain power; they will go to private hospitals and send their children to private education institutions."

About 4% of citizens who vote pay taxes, the percentage should be about 23

This last line is truly a clincher. It means the majority of people pariticipate in this democracy do not actually contribute to the country, but instead, feed on the little benefits it is able to pay out.

Individuals paying an income tax of greater than ₹1.5 lakh accounted for nearly 79% of the total tax.

If you happen to belong to this group, you might really feel that you have a good portion of the burden of the nation on your shoulders. Of course, this is good enough reason for the government to start taxing agricultural income over a certain level. Given that the bulk of the tax is paid by a small proportion of the population, there is always talk going around about doing away with the income tax at lower income levels.

But the question is can the government really afford to do this?