Controversy over Sam Pitroda’s tax
Indian Overseas Congress chief Sam Pitroda suggested a US-like inheritance tax in India even as the Congress distanced itself from his remarks.
In Short
- Sam Pitroda suggests US-like inheritance tax in India
- BJP says Congress wants to grab tax-paid resources
- Pitroda issues clarification, Congress distances itself
During a political slugfest over Congress’s wealth redistribution electoral promise, Indian Overseas Congress chairperson Sam Pitroda has argued for a US-style inheritance tax in India. Pitroda however came under fire from the BJP while the Congress distanced itself from his views.
Pitroda supported Congress’s poll pledge, arguing that wealth redistribution was in the best interests of the population, not only the super-rich.
Pitroda elaborated on the concept of inheritance tax in some American states, saying If someone has $100 million in wealth and dies he can probably only transmit 45% to his offspring while the government takes the other 55%. Controversy over Sam Pitroda’s tax
That is an interesting law. It says that if you made riches in your generation and are leaving now, you must leave half of your wealth to the public which seems fair to me.
In India, you do not have that. If someone is worth $10 billion and dies, his children receive $10 billion, while the public receives nothing… So these are the kinds of topics that will have to be debated and discussed, he added. Controversy over Sam Pitroda’s tax
In the United States, only six states impose an inheritance tax. Another type of tax is the estate tax, sometimes known as the “death tax,” which is levied on the right to transfer property after death. (Both taxes are discussed below.) Controversy over Sam Pitroda’s tax
Pitroda slammed Prime Minister Narendra Modi’s “politics of appeasement” dig at Congress over the electoral promise, saying, “It’s naive to imagine that… I have some concerns regarding his brain. Controversy over Sam Pitroda’s tax
Pitroda stated that wealth distribution was a “policy issue” while emphasizing the importance of a “minimum wage” in India.
“The Congress party would propose a policy that would improve wealth distribution. We do not have a minimum wage (in India). “If we establish a minimum wage in the country that requires you to pay so much money to the poor, that is the distribution of wealth,” he stated. Controversy over Sam Pitroda’s tax
Today, wealthy people underpay their peons, servants, and housekeepers, yet they spend the money on vacations in Dubai and London. When it comes to wealth distribution, it is not as simple as sitting in a chair and saying, I have this much money, and I’ll distribute it to everyone, Pitroda explained.
BE AWARE OF PROPERTY SNATCHERS, SAYS BJP
Pitroda’s remark triggered a political firestorm, with the BJP warning people of “property snatchers”. “Voting for Congress = Losing your Money + Property + Belongings! Voters be aware, property snatchers are here!” BJP spokesperson Jaiveer Shergill tweeted.
Shehzad Poonawalla of the BJP claimed that the Congress sought to “grab your hard-earned tax-paid resources. Controversy over Sam Pitroda’s tax
Ironically the Gandhis built a huge treasury for their own children and son-in-law, but they want to grab your hard-earned tax-paid resources he said on his Twitter account.
AMID ROW A CLARIFICATION AND CONGRESS RESPONSE
Amid the controversy Pitroda clarified that the US inheritance tax had nothing to do with the Congress manifesto.
I mentioned US inheritance tax in the US only as an example in my normal conversation on TV. Can I not mention facts? This has nothing to do with the policy of any party including Congress he said. Controversy over Sam Pitroda’s tax
The Congress, on the defensive, claimed Pitroda’s opinions did not always match the party’s viewpoint.
Sam Pitroda freely communicates his ideas on matters that he is passionate about. Certainly in a democracy, an individual is free to discuss, express, and debate his personal beliefs Congress communications chief Jairam Ramesh remarked. Controversy over Sam Pitroda’s tax
This does not imply that Pitroda’s views always represent those of the Congress. Sensationalizing his words and taking them out of context are purposeful and desperate attempts to divert attention away from Narendra Modi’s vicious and mischievous election campaign, which is based solely on falsehoods and more lies,” Ramesh added.
WHAT IS INHERITANCE TAX IN THE US?
The United States has two types of tax — estate tax and inheritance tax. Around a dozen US states have estate taxes and six have inheritance taxes.
An estate tax, also known as the “death” tax, is a federal tax imposed on property transferred after the owner’s death. The tax is owed by the estate, not by the beneficiaries. The federal estate tax ranges from 18% to 40%.
On the other hand, inheritance tax is levied on someone who has inherited money, property, or other assets. It is applicable only when the person dies and passes on assets in the states that have an inheritance tax. It is not dependent on where the beneficiary lives.
