In the midst of the fervent political atmosphere surrounding the Lok Sabha Elections 2024, Sam Pitroda, the chairman of the Indian Overseas Congress and a close advisor to Rahul Gandhi has stirred a contentious debate by advocating for the implementation of an inheritance tax akin to that of the United States in India. His proposition has sparked vehement criticism from various quarters of the political spectrum, with the Bharatiya Janata Party (BJP) accusing the Congress of harboring destructive intentions for the country.
Pitroda’s proposition revolves around the concept of an inheritance tax, which he suggests would enable the government to claim a significant portion of an individual’s wealth posthumously. Drawing parallels with the United States, Pitroda highlighted that under the American system, heirs are entitled to only a portion of their deceased relatives’ wealth, with the remainder being allocated to the government for redistribution. He emphasized the principle of leaving a portion of one’s wealth for the public good, characterizing it as equitable and fair.
“…In America, there is an inheritance tax. If one has $100 million worth of wealth and when he dies he can only transfer probably 45% to his children, 55% is grabbed by the government. That’s an interesting law. It says you in your generation, made wealth and you are leaving now, you must leave your wealth for the public, not all of it, half of it, which to me sounds fair. In India, you don’t have that. If somebody is worth 10 billion and he dies, his children get 10 billion and the public gets nothing…So these are the kind of issues people will have to debate and discuss. I don’t know what the conclusion would be at the end of the day but when we talk about redistributing wealth, we are talking about new policies and new programs that are in the interest of the people and not in the interest of super-rich only,” Pitroda remarked.
#WATCH | Chicago, US: Chairman of Indian Overseas Congress, Sam Pitroda says, "…In America, there is an inheritance tax. If one has $100 million worth of wealth and when he dies he can only transfer probably 45% to his children, 55% is grabbed by the government. That's an… pic.twitter.com/DTJrseebFk
— ANI (@ANI) April 24, 2024
Amid the escalating political rhetoric, Pitroda has defended Congress’s stance on wealth redistribution, asserting that it is rooted in the interests of the people rather than serving the super-rich exclusively. He has emphasized the need for robust policy measures aimed at addressing socioeconomic inequalities and ensuring a more equitable distribution of resources.
So #Congress wants to bring #InheritanceTax in India?
Parents earn all their life for the future of children but Pappu Gandhi says only 50% of your wealth you can give to your children while the other 50% will be grabbed by Govt. to enrich may be Gandhi family?
Do we want this? pic.twitter.com/mNelx34yya
— Dr.SG Suryah (@SuryahSG) April 24, 2024
The controversy surrounding Pitroda’s advocacy for an inheritance tax adds a new dimension to the electoral discourse, further intensifying the battle for supremacy between the Congress and the BJP.
In India, the imposition of inheritance tax ceased when the Rajiv Gandhi Government abolished it in 1985. Despite its “noble” aims, the Finance Minister at the time, V.P. Singh, believed it had not achieved its goal of creating social balance or narrowing the wealth disparity.
Congress would like to bring inheritance tax back in India. This means that when you die, half or a little less goes to govt, rest to the heirs. Rajiv Gandhi had removed this draconian law, now his friend says maybe it is an 'interesting' law to reconsiderhttps://t.co/55o2DCDagc
— Smita Prakash (@smitaprakash) April 24, 2024
Subscribe to our channels on Telegram, WhatsApp, and Instagram and get the best stories of the day delivered to you personally.