Thread by @gchikermane

Sorry @irsassociation @finmin @nsitharaman: these measures will be inadequate to derail the Indian economy.
Here are some ideas that may help.
All citations from my 2018 book, 70 Policies that Shaped India (@orfonline).
Download here orfonline.org/wp-content/upl…
1/n

https://twitter.com/IRSAssociation/status/1254279697854332933

Just 40% tax on the rich? It’s is too low. The rich are parasites, rogues, anti-national. You can do better.
The tax should be raised to 93.5% as Indira Gandhi had in her 1970 Budget.
And don’t forget the 15% surcharge that took the marginal rate of tax to 97.5%.
[Page 51]
2/n

Why only 'tax' income of the rich? Stop their income, period.
Learn from Finance Minister Y.B. Chavan, who in his May 1971 Budget put a monthly salary ceiling of Rs 5,000 and Rs 1,000 as perquisites.
“…which go ill with norms of egalitarian society.”
[Page 52]
3/n

The rich have been raising too much money from markets.
We need Controller of Capital Issues of 1947 that brought equity into equity markets till 1992, when it was unceremoniously repealed, gave way to SEBI.
Aah...the days of zero-risk, high-returns from IPOs.
[Page 1]
4/n

An even better idea: since the rich control industries, let us start nationalising them.
Under the government, they may be run aground but surely more equitably.
Nationalisation is also in tune with the magical word in the Preamble to our Constitution – ‘Socialist’.
5/n

Nationalisation of airlines in 1953 to “provide safe, efficient, adequate, economical and properly coordinated air transport services”.
So what if it destroyed India’s civil aviation sector? We, the people, did it, not some enterprising crook!
[Page 19]
6/n

Nationalisation of life insurance in 1956 by Jawaharlal Nehru: “...an important step in our march towards a socialist society.”
In one go, 154 Indian, 16 non-Indian insurers and 75 provident societies were nationalised and LIC was born.
[Page 29]
6/n

Nationalisation of banks in 1969 and 1980 by Indira Gandhi: “...necessary for speedy achievement of these objectives” – socialist pattern of society, control over commanding heights, end the control of the few, encourage a new class of entrepreneurs.
Truly noble!
[Page 45]
7/n

Nationalisation of coal mines in 1971 (management of coking coal mines, coke oven plants), 1972 (nationalisation), and 1973 (nationalisation of all mines).
So what if the ‘ills’ of private ownership and profit passed on to mafias, unions, bureaucrats, politicians?
[Page 49]
8/n

Nationalisation of general insurance in 1972, under Indira Gandhi: to serve better the need of the economy, develop the general insurance business in the best interests of the community, prevent concentration of wealth.
Poetry in economic policymaking.
[Page 53]
9/n

Nationalisation only hurts big industrialists. What about smaller ones?
Well, we must ensure they remain small: “Concentration of economic power is the central problem.”
Bring back the ideologically deadly Monopolies and Restrictive Trade Practices Act of 1969.
[Page 47]
10/n

Danger is our businessmen may invest their capital abroad.
No problem: bring back the Foreign Exchange Regulation Act of 1973.
Didn’t we force IBM and Coca Cola out of India and get MNCs to dilute their shareholding to 40% back then?
FDI? Take a walk.
[Page 55]
11/n

Finally, let us rewind to the golden era of controls, undo the Statement on Industrial Policy of 1991 did under P.V. Narasimha Rao and Manmohan Singh.
It was India’s biggest economic blunder – it reduced the control of government on entrepreneurs.
Terrible idea!
[Page 81]
12/n

I may have missed a few important laws, rules or regulations that could help derail the Indian economy. So, friends, do add to this list.
#COVID19 gives India an opportunity to reform orfonline.org/expert-speak/c….
Do not let that happen!
n/n

"Disregard this report totally," say @FinMinIndia sources, according to this thread by @szarabi
Good!

https://twitter.com/szarabi/status/1254399760842268673?s=19

Now, @IRSAssociation says the report does not purport to represent the official views of the entire IRS.
But if its profile is any indication, @IRSAssociation is the "official handle of the Indian Revenue Service Association".
Existential face-save!

https://twitter.com/IRSAssociation/status/1254380493753036800?s=19

Clarification from @IncomeTaxIndia: "...the impugned report does not reflect the official views of CBDT/MInistry of Finance in any manner."

Glad these ridiculous recommendations have been publically thrown out of @FinMinIndia.

https://twitter.com/IncomeTaxIndia/status/1254419379044773888?s=19

-- We have to bring in reforms that touch the lives of citizens
-- We have to give importance to the economy as well as continue the fight against #COVID19

Heartening to see that @PMOIndia @narendramodi is not listening to nonsense from @IRSAssociation.

pib.gov.in/PressReleasePa…