FROM 50 YEARS AGO he destroys the arguments for another part, overtaxing those whose high incomes come the differential taxation on dividends accord-from their own exertions that their desire to ing to the return they represent on a highly work is not seriously reduced? In a society arbitrarily defined paid-up capital. most of which is still to be left to private Nevertheless, it would be helpful if enterprise, it is very important that private between now and the next Budget – the companies and individuals should save and usual annual one, it is to be hoped Shri invest sufficiently, and also that their choice
Vol VIII, No 50, December 15, 1956 Krishnamachari will declare no more interims of investment should not be distorted by
– the Finance Minister would read Mr Kaldor discrimination in the tax system against risk.The Kaldor Report with great care, for Mr Kaldor’s Report Moreover, as society becomes more complex, (Special Articles) places an authoritative finger upon the key it becomes increasingly dependent on the
problem facing the tax structure of a ‘socialist efforts of a limited number of people whose
Many have seen in the latest Finance Bill pattern of society’. How is equality to be skills are at present in short supply: scientists, the Kaldor Report casting its ominous shadow combined with incentive? chartered accountants, senior civil servants before. This is only a half truth. The passion More particularly, how can men of property and so on. If these people have to face very high with which Mr Kaldor advocates one part of be taxed sufficiently to bring about some marginal rates of tax, there is the risk that they Shri Krishnamachari’s proposals, the capital measure of equality without destroying their may decide to be paid partly in increased gains tax, is equalled by the vigour with which desire to invest and at the same time so leisure, as they already are in, say, France.
Economic and Political Weekly December 16, 2006
