Indian govt can make taxes look good – by taxing bad behaviour, like honking

An overall look at the second Modi government’s first budget reveals an underlying commitment to raise revenues, mainly in the form of new taxes. In the face of a slowing economy, higher taxes can exacerbate matters. Money in the hands of citizens and investors does a lot more for India than the money that passes through the hands of governments. Given the narrowness of the tax base, it is unfair to levy more taxes on those who are already paying taxes without making greater attempts to bring more people and firms into the tax net. If raising taxes on goods, income, profits and beneficial economic are bad, what option does the government have? Can there be “good taxes”? Yes. They are taxes on the bads.Read more