Superpower's weak institutions

The money raised through a higher capital gains tax will hardly add much to the Rs 24.4 trillion of revenue receipts and Rs 41.9 trillion of spending estimated for 2023-24

Last week, Bloomberg reported India was preparing to overhaul its direct tax laws to help “Prime Minister Narendra Modi reduce widening income inequality”. Already, in the recent Budget, the government decided to tax debt funds at the normal income-tax rate. When the article appeared, there was consternation among a few, leading the government to backtrack immediately. But the genie was out of the bottle. The government had prepared us. It is now a matter of time before long that capital gains tax rates will be “rationalised”. But will taxing the rich reduce inequality when the rich are getting richer not