The worst kind of Tax is Income Tax, it taxes the very people who actually work and produce goods and services for the country.

The excuse is that higher income people should pay higher tax. But it doesn’t talk about active income or passive income. People who earn active income are the real drivers of the economy, without them things would come to a standstill. Whereas people who have hoarded huge amount of wealth and are not contributing anything in terms of physical goods or services are a liability for the economy. But since the tax laws are prepared for their benefits with loopholes to help them continue living lavish lives and yet pay minimal tax.

The best thing would be to have Negative tax on active income; yes you read it correct, a Negative Tax on active income. People who work actively should get additional government benefits as an incentive to work more and contribute towards the production of goods and services, which would result in sufficient supply of Goods and Services at a reasonable Cost.

While there should be 1 to 2% tax on World wealth of citizens. This along with Funds Transfer Tax of 50 to 70% would ensure that speculative funds stay out of the country or if they are already in the country then they pay a very huge amount of lump sum tax to move it outside the country.

All the citizens irrespective of their wealth would have to file tax showing their total assets and liabilities and pay 1 to 2% tax depending on the fiscal requirement of the country. Also this will enable the government to distribute the benefits not just based on current income but instead on the actual wealth.

This will also promote higher spending in the economy resulting in increased economic activity and discourage hoarding of wealth