{"id":14898,"date":"2020-04-27T09:58:33","date_gmt":"2020-04-27T04:28:33","guid":{"rendered":"https:\/\/itatonline.org\/info\/?p=14898"},"modified":"2020-04-27T09:58:33","modified_gmt":"2020-04-27T04:28:33","slug":"irs-officers-propose-steep-hike-in-taxes-cbdt-slams-them-after-vehement-protests-from-furious-taxpayers","status":"publish","type":"post","link":"https:\/\/itatonline.org\/info\/irs-officers-propose-steep-hike-in-taxes-cbdt-slams-them-after-vehement-protests-from-furious-taxpayers\/","title":{"rendered":"IRS Officers Propose Steep Hike In Taxes; CBDT Slams Them After Vehement Protests From Furious Taxpayers"},"content":{"rendered":"

Some eager-beaver IRS officers have landed themselves in hot water by circulating a document titled \u201cFORCE 1.0<\/a>\u201d (Fiscal Options & Response to COVID-19 Epidemic). <\/p>\n

The document is said to be \u201cRecommendations of the Indian Revenue Service on revenue mobilization and economic impetus to fight COVID-19<\/em>\u201d. <\/p>\n

Increase the peak income-tax rate to 40% to meet the deficit <\/h2>\n

Essentially, the recommendations are that since there will be a loss of revenue due to the Covid-19 Pandemic, more taxes should be imposed on the taxpayers, especially the affluent category. <\/p>\n

\u201cIn times like these, the so called \u201csuper rich\u201d have a higher obligation towards ensuring the larger public good. This is for multiple reasons \u2013 they enjoy a higher capacity to pay with significantly higher levels of disposable incomes compared with the rest, they have a higher stake in ensuring the economy springs back into action, and their current levels of wealth itself is a product of the social contract between the state and its citizens,<\/em>\u201d it is stated, reflecting the ideology of a socialist. <\/p>\n

\u201cMost high-income earners still have the luxury of working from home, and the wealthy can fall back upon their wealth to cope with the temporary shock. In view of several European economists, taxing the wealthy would be the most \u201cprogressive fiscal tool\u201d, as wealth is far more concentrated than income and consumption,<\/em>\u201d it is added.<\/p>\n

It is suggested in the report that this segment of the population can be taxed through two alternative means, both of which can be imposed for a limited, fixed period of time:<\/p>\n

* raising highest slab rate to 40%<\/strong> for total income levels above a min. threshold of Rs. 1 crore<\/p>\n

Or<\/p>\n

* re-introduction of the wealth tax for those with net wealth of Rs. 5 crores or more. <\/p>\n

\n

Almost 50 young IRS officers submit policy suggestions for reviving India's economy, post COVID 19.#IRS<\/a>: committed to help build Nation's economic immunity.@PMOIndia<\/a> @nsitharamanoffc<\/a> @Anurag_Office<\/a> @FinMinIndia<\/a> @IncomeTaxIndia<\/a> pic.twitter.com\/vZVqd9HG5S<\/a><\/p>\n

— IRS Association (@IRSAssociation) April 25, 2020<\/a><\/p><\/blockquote>\n