Don’t soak the rich

Even if you ignore the controversy over whether or not the majority of economists present at the meeting with the finance minister on Monday wanted to levy a surcharge on the rich, the facts suggest little justification for the proposal—though it is undoubtedly true that, since these taxpayers are in the tax net anyway, a surcharge will likely fetch a tidy sum of money. The issue, however, is whether this is justified on grounds of equity and whether larger amounts can’t be got from other taxation—that is, whether the move makes sense on grounds of efficiency.

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