GREEN WEALTH TAX: ECONOMY

GREEN WEALTH TAX: ECONOMY

NEWS: A green wealth tax in Budget 2024

 

WHAT’S IN THE NEWS?

A wealth tax-financed Indian Green Deal would be able to tackle climate change as well as address inequality and unemployment.

Budget Priorities:

  • Employment Generation:Focus on long-term employment solutions for India's young population.
  • Tackling Inequality: Implement tax and expenditure policies to address wealth and income disparities.

Indian Green Deal (IGD) Proposal:

Wealth Inequality and Carbon Emissions:

  • Significant rise in inequality in wealth and income over two decades.
  • Higher consumption by the Indian elite leads to increased carbon emissions.
  • Carbon footprint of the top 10% converges with that of first-world citizens.

Wealth Tax: Proposed to address multiple issues simultaneously.

·         Wealth tax-financed IGD could focus on green energy, infrastructure, and the care economy.

Spending and Employment Generation:

·         Allocation of Atmanirbhar Package: Proposed reallocation:

·         5% on infrastructure.

·         3% on the care economy (health and education).

·         2% on green energy programs.

·         Employment Impact: IGD could generate 38.7 million jobs (8.2% of the labor force).

Financing the IGD:

  • Wealth Tax Rate: Initial rate of 1.7%, declining to 1.3% by 2032.
  • Sustainable Funding: Based on the projected rise in wealth of the Indian elite.

Goals:

  • Climate Change: Lead by example in tackling climate change.
  • Social Impact: Address unemployment and inequality.

Source: https://epaper.thehindu.com/ccidist-ws/th/th_delhi/issues/92049/OPS/GTCD3EU5O.1+GHCD3GCI7.1.html