Thursday, March 08, 2007

Simplified tax

Discussion started when MS mentioned about the medical allowance and travel allowance. Various policies and practices pertaining to tax system came into perspective. I feel we should have a simple taxing system. A standard percentage of income to be deducted; maybe a slab on different income range is fine.

The current system of providing allowance for medical, travel, insurance, donation, etc etc provides loophole for people to misuse. A simplified taxing would free up people from these calculation and crookedness.

PG had a good counter argument about genuine people needing such provisions and benefits, and the difficulty of government to aid them in some other means.

Since I am not an expert in these domains, I couldn't provide more points; but feel that something can be done to simplify.

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