Thomas Piketty News

Subscribe to enjoy similar stories. When it comes to budgeting, there are some revenue streams that are linked with broader growth in the economy. These include the goods and services tax (GST), which is a consumption-based tax, corporate tax, which is linked to the profitability of companies, and customs duty, which is driven by imports.

While there are many ways to measure economic inequality, key metrics consistently show that disparities are getting worse. According to a recent United Nations report, 71% of the world’s population now live in countries where inequality has increased. Unsurprisingly, this includes India and China.

Paradigm shifts in mainstream economic thinking usually accompany crises demanding new answers, as occurred after stagflation—low growth and high inflation—gripped advanced economies in the 1970s. And it may be happening again, as liberal democracies confront a wave of popular distrust in their ability to serve their citizens and address the multiple crises— ranging from climate change to unbearable inequalities and major global conflicts—that threaten our future.

Thomas Piketty suggests India should impose a wealth tax on the ultra-rich to tackle inequality and create fiscal space for investments in the social sector. The paper, released on Friday, suggests imposing a 2% annual tax on net wealth over ₹10 crore, and a 33% inheritance tax on estates exceeding ₹10 crore in valuation. This could generate revenue amounting to 2.73% of gross domestic product (GDP), it said. According to the paper, Towards Tax Justice & Wealth Redistribution in India: Proposals, based on the latest inequality estimates, 0.04% of the adult population holds more than a quarter of total wealth, and imposing this tax would leave 99.96% unaffected. «Progressive wealth taxation, effective redistribution, and broad-based social sector investments are urgently needed to build an equitable and prosperous India,» said Anmol Somanchi, one of the four authors of the report.

Mint looks at the concept, the pros and cons of implementing it and the outcomes of past attempts. It is a process by which income and wealth is transferred from the rich to the poor through steps such as taxes, land reforms and welfare measures. This is done to bridge economic inequality in the system.

Recently, a working paper titled ‘Income and Wealth Inequality in India, 1922-2023: The Rise of the Billionaire Raj,’ by Nitin Kumar Bharti, Lucas Chancel, Thomas Piketty and Anmol Somanchi was released. Sections of the Indian media lapped it up, forgetting that it is not a peer-reviewed paper; nor has it been published by any reputed journal. We present arguments here in the hope that it will leave readers better informed on inequality in India.

Congress attacked the government on Wednesday regarding a report that highlights income and wealth disparities in India spanning a century. Party general secretary for communications, Jairam Ramesh, stated that the report titled «Income and Wealth Inequality in India, 1922-2023: The Rise of the Billionaire Raj,» authored by renowned economists such as Thomas Piketty raises significant concerns. Ramesh claimed that under Prime Minister Narendra Modi's leadership, the wealth gap in India has surpassed that of the British colonial era, dubbing it "Narendra Modi's Billionaire Raj." «The bottom line is this: Narendra Modi's Billionaire Raj, nurtured by the Prime Minister to favour his friends and fund his party's campaigns, is now more unequal than even the British Raj,» he alleged.

grown by an above-trend 3%—about the same as in boomy 2005. Adding to the impression of befuddlement, most analysts were caught out on December 13th by a doveish turn by the Federal Reserve, which sent them scrambling to rewrite their outlooks for the new year. It is not just forecasters who have had a bad year.