Sunday 18 March 2012

Interest From Vote Banks: The Untapped Revenue

"Yes, we can!"
Before you disregard this as a sequel to "The Secret", or a popular electoral chant, read on. 

We complain about the lack of accountability in India but other than cribbing about it, no one wants to deal with the root cause. Honestly, you can't really blame the politicians for everything, the voters are at fault here as well.
"Hamara kya jaata hai, baday log tax dete hain, hamay toh muft daru mil jaati hai na election ke time." 

But seriously, why, in a population of 1.21 billion people, we only hear the few voices of discontent from the urban/middle class landscape? Because they are the ones who are directly contributing to taxes, which makes them upset about "their" money being misused. 

[Only 2.7% earn enough to be eligible for taxes. That's about 32 million people who are burdened, to collect Rs. 1,12,114 crores (Tax collection - 2011)] about 10% of government's total expenditure: Rs. 12,16,576 crores (Planned and Non-Planned) Source: http://indiabudget.nic.in/ub2011-12/eb/be.pdf ]

If you think about it, only 10% of the money that is required by this giant nation of hungry mouths is met by 2.7% people. These 32 million people, armed with their glasses of scotch and the internet are genuinely pissed-off. They are not getting their money's worth when it comes to infrastructure and law & order.

Really, all it boils to being unhappy with the government is if it's your own money at stake.


So, how do you generate interest from the rest of the nation? 

Tax them. Well, make them file taxes, get them involved and give them the pride, self respect and reason to crib about their conditions. Because once you pay for the membership to this secretly discontent club, you suddenly have the right documents to ask questions without any fear.


The total Indian workforce in 2009-10 was 460.6 million, out of which, 75.6 million are regular employees and 151.7 million are casual labor. 

Let's just take a look at the numbers: 75.6 +151.7 = 227.3 million. 

Here's what I propose

Most of these people earn way below the Rs. 1,80,000 tax exemption slab so they are not even liable to file any taxes. Average daily wages of labor (semi-skilled and helpers) Rs. 5000/month. The govt can add a 2% tax on their wages. 1% from the employer and 1% from the employee. That's Rs. 100/month or Rs 1200 per year. 

227.3 million X 1200 = Rs. 272.760 Billion revenue generated per year from the working force. 

What's in it for the labor? 
Simple. They file for taxes at the end of the year and collect their Rs. 600 back and call it a bonus for being part of a legit system. 

What's in it for the government? 
Apart from the Rs. 136.38 billion (Rs.13638 crore) added revenue, plus about 10% interest collected on the other half or Rs. 1363.8 cr.
Grand total: Rs. 15,001 crore of chump change, by doing absolutely nothing. 


Believe it or not, this figure is higher than Haryana's total excise revenue last year. Rs. 11,677 crores.

This money could be used for any number of developmental programs for the labor:
running water, housing, electricity, better roads, education (at all levels, including better training centers to get them upgraded).

It also provides the government with a fool-proof method of identifying anyone who is contributing to the society.

This is a win-win for everyone, including the industries who are facing a shortage on skilled labor. Or, you could also waive off the education cess on the excise duty, will make things cheaper for the general public and you the extra money to offset it.

Think about it, Mr. Finance Minister, it really is not that difficult. If you accept my proposal, I take payments in cheese.

Wednesday 7 March 2012

How To Rule, FOREVER: 101

I have a dream, said someone important once. He did not rule a nation or an empire.
That is the problem, dreamers don't rule, they only help people understand what is wrong with their reality.

So what makes a leader, a genuine, in your face, son after son after daughter after son ruler? 
Simple, Shortage
"Whatttt?! Surely you jest, Mr. Rat, check the expiry date on that cheese again!" 

Let's look at the feudal system: 
You have the king, his middle management and his people. 
His people were mostly workers, working their butt off, paying taxes in form of service/grains/livestock in return got protection, which works fine until there was unrest due to some dreamers, who saw the flaw in the system. 

Luckily, blight, drought, or heavenly locusts were always around the corner. This is where our shortage comes in handy. The king has the reserves in his granary, he still demands taxes that people can't pay, so you jail some, maim a few, create terror and rule. But, a king can't always be cruel to rule (yeah, I put the rule in cruel there), so every now and then, free grains to the guy who has a hot daughter/wife/sister. 
This does 2 things (besides the obvious of scoring with a hottie): 

1) Makes someone dependent for life (give a man quarter of a fish everyday, eh!) 
2) Create a divide among the population 

The guy who got shit for free, loves the king, swearing his allegiance forever, 
"Rajahji ki jai...Hamara neta amar rahe.." 

The family of the guy who got maimed and jailed is scared, which leaves less than 2% who still dare to dream, who are busy on the internet writing crap like this. 

Does this apply in today's scenario? SP's recent victory in UP surely suggests it. Unemployment Allowances for people who may or may not be eligible for the benefit, without doing anything. What could be better? A legion of early to mid 20s, completely dependent on the government for money and have nothing to do all day than to screw their wives, making babies and securing the future of the next generation of the politicians. 

The only problem, how to stop the dreamers? Create a shortage of schools. Which creates a shortage of teachers for the future, which creates a shortage of...well, you get the picture. 

So you see kids, it is that simple. That is what 5000 years of sub-continent history teaches us. 
It is in our genetic code, be a bunch of lazy bastards who love free handouts. 
If there is a shortage or limited supply of essential commodities, find a way to control it. 
Can't create a shortage? Ask the people to procreate. "Go forth and multiply!" the good Lord said to his people. 

So, join me, create a shortage of whatever you can get your hands on and we shall rule the world, TOGETHER!  

"...and you get an island..and you get an island...and...ISLANDS FOR EVERYONE!"