CEA Nageswaran Calls For Balanced Approach To Taxation And Capital Investment
Date
12/14/2024 2:07:14 PM
(MENAFN- KNN India)
New Delhi, Dec 14 (KNN)
Chief Economic Advisor V Anantha Nageswaran recently offered nuanced insights into taxation, capital investment, and economic equity.
Speaking at an event organised by the Research and Developing System for Developing Countries (RIS), Nageswaran emphasised the delicate balance of fiscal policy and its potential unintended consequences.
Addressing the complex issue of capital taxation, Nageswaran cautioned that lowering taxes may not necessarily stimulate investments, while aggressive taxation could potentially drive capital away from the economy.
He underscored the challenging nature of economic policy by noting that while expelling capital is relatively straightforward, attracting it back proves significantly more difficult.
The economic advisor explicitly rejected the proposed 'billionaire tax' suggested by renowned economist Thomas Piketty, stating that "Not all problems can be solved through fiat.”
While acknowledging a potential need for increased contributions from wealthy individuals, Nageswaran highlighted the practical challenges of measuring wealth and implementing equitable distribution mechanisms.
Nageswaran advocated for a nuanced approach to economic policy, emphasizing that equality of access and opportunity should take precedence over equality of outcomes.
He warned that overzealous regulatory enforcement could disproportionately impact micro and small businesses, which often lack extensive management and financial resources.
Concluding his remarks, the Chief Economic Advisor stressed the importance of understanding the asymmetric effects of public policy.
He proposed that the true measure of equitable growth should be the reduction of poverty, rather than a narrow focus on income inequality.
This perspective underscores a broader, more holistic approach to economic development and social progress.
(KNN Bureau)
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