Amidst a heated political debate surrounding Congress’s promise of “wealth redistribution,” Sam Pitroda, the chairperson of Indian Overseas Congress, has proposed the implementation of an inheritance tax similar to that of the United States. However, Pitroda faced criticism from the BJP while the Congress distanced itself from his statements.
During an interview with ANI, Pitroda defended Congress’s electoral promise, stating that the policy of wealth redistribution was not solely in favor of the super-rich but also in the interest of the general public.
Expanding on the concept of inheritance tax in certain American states, Pitroda explained, “If someone possesses $100 million worth of wealth and can only transfer around 45% of it to their children upon their demise, the remaining 55% is claimed by the government. This is an intriguing law. It implies that the wealth accumulated in your generation should be shared with the public, albeit not entirely, but at least half of it, which seems fair to me.”
“In India, we do not have such a provision. If an individual is worth 10 billion and passes away, their children inherit the entire 10 billion while the public receives nothing… These are the types of issues that people need to discuss and deliberate upon,” he further added.
It is worth noting that only six states in the United States have an inheritance tax. Additionally, there is another tax known as the estate tax, commonly referred to as the “death tax,” which is imposed on the transfer of property after one’s demise.
Pitroda criticized Prime Minister Narendra Modi for his accusation of the Congress party’s “politics of appeasement” regarding their election promise. Pitroda expressed his disagreement with this viewpoint, stating, “It is simplistic to think in such a way… I have certain reservations about his intellect.”
Pitroda emphasized that the issue of wealth distribution is a matter of policy and highlighted the necessity of implementing a “minimum wage” in India.
According to Pitroda, the Congress party intends to formulate a policy that would improve wealth distribution. He pointed out the absence of a minimum wage in India and proposed that establishing one would ensure that the poor receive a fair share of wealth.
Pitroda further criticized the current scenario where affluent individuals do not adequately compensate their employees such as peons, servants, and domestic help, but instead spend their money on luxurious vacations in Dubai and London. He clarified that the distribution of wealth should not be a mere declaration of intentions, but rather a practical implementation.
BE AWARE OF PROPERTY SNATCHERS, SAYS BJP
Pitroda’s statement ignited a political controversy, as the BJP cautioned the public about “property snatchers”. “Choosing Congress = Losing your Money + Property + Belongings! Voters beware, property snatchers are among us!” BJP representative Jaiveer Shergill posted on Twitter. Shehzad Poonawalla of the BJP mentioned that the Congress aimed to “seize your hard-earned tax-paid resources”. “Ironically, the Gandhis amassed a substantial fortune for their own offspring and son-in-law, yet they seek to seize your hard-earned tax-paid resources,” he tweeted.
In the midst of a dispute, a clarification and a response from Congress.
In the midst of the controversy, Pitroda made it clear that the inclusion of the US inheritance tax in his conversation had no connection to the Congress manifesto.
During a television discussion, I mentioned the US inheritance tax as an example in a casual conversation. Should I not be allowed to state facts? This has absolutely no relevance to the policies of any political party, including the Congress,” he stated.
The Congress, on the defensive, stated that Pitroda’s opinions do not always align with the party’s stance.
“Sam Pitroda freely expresses his opinions on issues he feels strongly about. In a democracy, individuals have the freedom to discuss, express, and debate their personal views,” said Jairam Ramesh, Congress communications in-charge.
“However, this does not imply that Pitroda’s views always represent the position of the Congress. Presenting his comments in a sensationalized manner and taking them out of context are deliberate and desperate attempts to divert attention from Narenda Modi’s deceitful and mischievous election campaign, which is solely based on falsehoods,” Ramesh added.
Concept of inheritance tax in the United States?
The United States has two distinct types of taxes: estate tax and inheritance tax. Estate tax, commonly referred to as the “death” tax, is a federal tax that is imposed on the transfer of property after the owner’s demise. This tax is the responsibility of the estate itself, rather than the beneficiaries. The federal estate tax rate varies from 18% to 40%.
In contrast, inheritance tax is imposed on individuals who inherit money, property, or other assets. It is only applicable when a person passes away and transfers assets in states that have an inheritance tax. The tax is not influenced by the location of the beneficiary’s residence.