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THE “BLACK MONEY” LARGELY IT EXISTS IN ALL TAXED ECONOMIES EXCEPT “NO TAX COUNTRIES”

 
 
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THE “BLACK MONEY” LARGELY IT EXISTS IN ALL TAXED ECONOMIES EXCEPT “NO TAX COUNTRIES”
by System Administrator - Friday, 31 March 2017, 3:08 AM
 

By : M.S.Yatnatti: Editor and Video Journalist Bangalore : Experts say remove income tax and black money gets eradicated. Modi Government can do wonders if it remove income tax and it will revolutionize Indian tax system..Reportedly Demonetization has removed old black money and Re-monetization has created new black money as cash transactions happens at a rapid phase and at multiple transactions happen and multiple phases and cash is moved from one person to another person's an transactions are not reported in tax returns and thus creation of black money will be a chain reaction whether it is digital transaction or cash transition and it is almost impossible to government to track tax evasion as transactions happens every day every day . Remove income tax and black money gets eradicated .Keep only sales tax or service tax. Taxing on both sides is not a good economy. According to reports "The cash assets on which taxes have not been paid is termed black money .Largely it exists in all taxed economies except no tax countries like UAE ".Economy does not recognize color of money but govt does. As long there are taxes, there is scope for black money. It is not possible for taxing countries to do away with black money. However, dilutions are easily possible. Black money and corruption have in every country. So, a model cannot eradicate these problems from the society. If the government become more conscious and people become honest then they can be reduced. Corruption is nothing new in any country and any society. Every human being is opportunistic in one way or other. If a student gets chance to copy for good marks he will do.Everybody wants quick benefits with less hard-work, that's why when opportunity arises nobody thinks about welfare of others. So the only way to contain it is severe laws and strict enforcement. but then the question arises what if the law-makers are corrupt. That's exactly what happens in poor and least developed countries the most.Corruption may also be existing in developed countries, but it won't be affecting the day-to-day life of millions of people. So that's why corruption is more a topic of behavioral economics. Corruption and black money can be modeled but i don't think some empirical or mathematical model can wipe out these problems from the country until or unless the people+politicians+bureaucrats are fully determined to do so. For me only one unique to eradicate the corruption in the world is firm belief in God and punishment one will get Hereafter for disobeying Our Lord. otherwise there is no model or theory which will guarantee that corruption will be eradicated.