In a recent episode of 'Editorial', Mr. Sujit Nair delved into the topic of taxing inherited wealth, prompted by a statement from Sam Pitroda, Chairman of Indian Overseas Congress. Pitroda, in an interview, discussed the rationale behind wealth redistribution, citing the example of inheritance tax in the United States. He characterized it as an intriguing policy that prioritizes the public interest over the super-rich. Pitroda explained that under this law, if someone possesses $100 million in wealth and passes away, only 45% of it can be transferred to their children, with the remaining 55% claimed by the government. He viewed this as a fair measure, emphasizing the notion that individuals who accumulate wealth during their lifetime should contribute a portion of it back to society upon their passing.
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[00:00:02] Hello and welcome to HW Editorial with me Sujit Nair. Here you can listen to my views, my analysis. Follow this podcast to stay updated. At HW News, we have been delivering news that matters to you.
[00:00:17] Our goal is to present you with information that stimulates conversations around topic of larger public importance that often gets lost in prime time shows. Namaskar. Welcome to another episode of Editorial. Now our good Prime Minister Mr. Narendra Modi says that,
[00:00:49] listen you know what Congress' plan for equality, very very dangerous game. This is what he says. Why and how could a plan for equality be dangerous? Let's try and understand this. Let's get right into the show. So Congress' manifesto merely mentioned that there will be redistribution.
[00:01:17] As in they have said that you see, there is a huge inequality of wealth in India. They will try and redistribute it. This is what they said.
[00:01:25] Now you know there was there is this Congress leader and I think he is the international leader of Congress and all of that. He sits in US. His name is Sam Petroda. I know him very well. I have taken an interview of his.
[00:01:39] He went out and said that inheritance act or inheritance tax in India will be a good thing for redistribution of wealth. Who said it? Sam Petroda said it. Congress never actually made any such statement. Congress manifesto also didn't make any statements.
[00:01:57] Now for Bharatya Janata Party and especially our Prime Minister, this was a great opportunity to kind of go to people and say, Baap re, redistribution of wealth, aapka inheritance aapko jo inheritance milta, wo le jayenge. Congress is planning to take away your inheritance from you.
[00:02:17] My God! What is going to happen to this country? Now that has become huge headlines. Huge headlines. Every newspaper carries it. Every media is carrying it today. So the Prime Minister got headlines and also a good cane to whack Congress. So that is politics. Let's keep that aside.
[00:02:40] Now let me ask you a simple question. What is so bad about inheritance tax? What is bad about it? Let us first understand our situation and then let us get into inheritance tax. You see, in 2000, 54.8% of our wealth was with 10% of our population.
[00:03:04] 54.8% of our wealth. 23.5% of our wealth was with 1% of our population, top 1% of our population. And you know what common people had? The bottom 50% of our people, we had 8.3% of wealth.
[00:03:24] So normal people put together, the entire normal people put together had 8.3% and the top 10% had almost 75-76% of the wealth. This was the inequality of income. This was 2000. 2005 it increased. The 1% increased from 23.5 to 23.6 and common people went up from 8.3 to 8.6. Starting 10 onwards, common people started degenerating.
[00:04:02] 10 we had 6.9% of the wealth, 15 we had 6% of the wealth and 21 we have just 5.9% of the wealth. So common people our wealth went on reducing and the rich. 2005 the rich had 23.6%. 2010 the rich had 30.1% of 1% rich had 30.3%. 2015 31.8%. 2020 31.7% and 2021 33%.
[00:04:36] So the rich started getting more and more of our wealth and the poor that is we people. We people, the normal people of India our wealth started reducing. This was the gap. The gap was increasing.
[00:04:53] So somewhere on the line now this started with let me tell you this was true even in Congress regime. So it was not that in Congress regime everything was fine. It was there in Congress regime but he came out and said that
[00:05:08] why not work out ways to redistribute wealth so that the rich doesn't become richer and richer and the poor doesn't become poorer and poorer. So they taught about redistribution of wealth. Now this is what I said this is what they had mentioned.
[00:05:22] Specifically they had not mentioned anything. Sam Patota in United States says that in United States there is an inheritance tax. Now let me tell you it is not just United States. It's inheritance tax exists in United States. It exists in United Kingdom.
[00:05:36] It exists in France almost every Europe and America and America. Every developed country has inheritance tax. So he said that wouldn't be a bad idea. BJP said what is wrong with you? What is wrong with you? You are taking away our money. You are taking away our gold.
[00:05:56] You are taking away our inheritance. Ah now this is where the problem is. Who exactly is BJP trying to support? I'll give you an example. You see that bottom 50% of people that I spoke to about the common man you and me.
[00:06:15] You see the bottom 50% of people what do we inherit? One acre of land, 5 lakh rupees in the bank, one bedroom flat. This is what a common man inherits right? What does an Ambani son inherit? What does an Adani son inherit?
[00:06:36] What does a super rich man's son inherit? What does a Godrej's son or daughter inherit? What do they inherit? And compared to what a common man's child inherits.
[00:06:48] Now the point is say for instance in United States where 40% of the inheritance is taken in as taxes and redistributed it. Who suffers the most? Whose money will go maximum? People who have 1 lakh, 2 lakh, 5 lakh crores as their assets.
[00:07:10] Crores, crores and crores as their wealth which 10 generations cannot spend. 10 generations cannot spend that kind of money and it goes to finally who? To that man who otherwise would have had 3 lakh rupees in his bank which he inherits.
[00:07:28] It will go to help him. So is inheritance law good or inheritance law bad? You see if everything was equal, if there was equality of wealth or not equality, equality is an utopian term.
[00:07:44] If there was some kind of a balance between the rich and the poor, some kind of justification between the rich and the poor one can understand.
[00:07:55] Here the justification is 1% of your population has almost 35% of your wealth. 1% of India's population, 1% and we are saying that money should not be redistributed and a party is protecting that saying that there is a case of inheritance. Who are you protecting?
[00:08:16] You are protecting the interest of Adani, you are protecting the interest of Ammani family, you are protecting the interest of Super Rich.
[00:08:22] That's the interest you are protecting. You are not protecting the interest of a common man who says, you know I heard one of their spokesperson say that you know first generation earns, the next generation builds, the third generation enjoys the money.
[00:08:37] Hey, I said, sir, who is it? It happens with Birla's, with Tata's. Have you ever heard of that? Does it happen to a common man? Who is there? Who are they talking about? They are talking about the Birla's and the Tata's.
[00:08:48] They are talking about huge business houses, business families. If the wealth is redistributed, a common man, a common child on the street, that child will benefit now. He doesn't have to wait for four generations. What are you talking about? What economics are you talking about?
[00:09:07] Is this how you're thinking? Is this what you think about the poor? That he will earn money, then his son will invest that money and then his grandson will enjoy that money.
[00:09:18] Is this what you are thinking about the poor? And this is how you're going to feed the poor? No doubt. No doubt you are giving free ration to people. The reason you are giving free ration to people is so that you feed and keep them alive.
[00:09:31] They will live, they will eat, they will live, they will live and they will die that way. They will die that way because never will they get a chance to possibly try their luck, to possibly invest in something, to possibly get some business happening,
[00:09:46] to possibly increase their better their lifestyle. They will never get an opportunity because you will not give them no. Because the money is with the rich it will remain with them. They will get two square meals so they are happy.
[00:09:58] So the rich will go richer and richer and richer and the poor will survive because they get free ration. And they will vote for you and thank you for the rest of your life. Is this what you are actually looking at?
[00:10:09] Is this your strategy? My God, my God, I was, I was foxt when I heard that statement of the Prime Minister and their spokesperson.
[00:10:21] I was foxt. What are we talking about? Are you openly now fighting for the super rich? Are you openly protecting the interest of the super rich? See this entire thing, the entire thing about economy and the entire thing about redistribution of wealth is going the wrong direction.
[00:10:42] And the fact is what scares me more is if this is how this government is thinking. I do not see those people, those people who are getting free ration. They will continue to get free ration for the next 15 years, 20 years.
[00:10:55] And they will remain in that same position that they were getting free rations because they will have no option but to just wait in that queue to get that free ration and survive that night.
[00:11:08] They will have no option. They will have no option of starting a small business of their own. They will have no option of aspiring to be an Adani.
[00:11:18] Because if there are more Adanis then it is dangerous for Adani. It is dangerous for Adani and I am saying Adani as a case in point. I would be any businessman. The point is now I wonder who the government is protecting. Common people or the super rich?
[00:11:38] You think about it? Let me know on your comments below and till I see you next time that's tomorrow at 10. Namaskar. Thank you now for a smarter, faster news experience.