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