Piketty wrong again on soaking the rich. What we need is equality of opportunity
Swaminathan Anklesaria Aiyar
Updated: Jun 1, 2024, 19:59 IST
Famed economist Thomas Piketty and three colleagues proposed a tax on net wealth and an inheritance tax. But draconian taxes drive business into black money without collecting much revenue.
Famed economist Thomas Piketty and three colleagues recently produced a paper proposing a 2% tax on net wealth above Rs 10 crore plus a 33% inheritance tax on estates of over Rs 10 crore. These, they claim, can yield a whopping 2.7% of GDP to be used to benefit the poor. Such a tax will affect only the richest 0.04% of adults, leaving 99.96% unaffected.
It will rectify inequalities in one of the world’s most unequal societies, says Piketty, which has become especially unequal between 2014 and 2023 — the Modi era — with the top 1% getting 22% of all income and owning 40% of all wealth.
It will rectify inequalities in one of the world’s most unequal societies, says Piketty, which has become especially unequal between 2014 and 2023 — the Modi era — with the top 1% getting 22% of all income and owning 40% of all wealth.
