70% tax on millionaires?

Nawaz Dhandala
Nawaz Dhandala
Published in
2 min readFeb 14, 2019

70% tax on millionaires? They’ll just end up creating companies and stashing wealth in them to avoid tax because corporate tax is much much lower (~20%).

Then you end up increasing corporate tax too which incentivises corporations to have offshore operations and stash their cash offshore, hurting national economy and job growth in the long run.

The intention behind increasing taxes on millionaires is to increase tax revenue and to support programs like free healthcare and education. If increasing tax revenues is your goal, that can be achieved by other means as well.

Your goal should not be to increase tax revenue, but to create and grow long term wealth and be competitive with global markets on taxation of that wealth. Growth on wealth is directly proportional to growth in tax revenues. More wealth you have more tax revenues you have.

One of the ways to create wealth is to have nation’s youth create companies instead of applying for jobs. Entrepreneurship should be taught in schools along with Science, Tech, Engineering and Math. It should be called STEEM instead of STEM.

By teaching Entrepreneurship, I do not mean lecturing students. I mean programs that let them build ANY product and sell to ANY customer they want to, and incentivise them on gross sales in the end of semester. Repeat this 4–5x (in every semester) and the mindset changes.

Building and growing companies which looked impossible before, looks possible, doable and more importantly fun and challenging.

This is how nation creates wealth, increases productivity, increase tax revenues, support social programs, and more importantly innovates and finds new ways to solve problems.

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