Re: UCC - specific laws

[prabhu.guptara@ubs.com]

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[Topics under debate]: GOOD GOVERNANCE
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     Dear Arvind

     I must be being particularly stupid at this time of the night, but I
     can make no sense of your point of view here.

     How will charity work get a boost if income tax is deducted from the
     amounts donated?  Will charitable activity not rather be reduced by
     the proportion of money removed from the charity as a result of the
     tax?  How can a tax of say 10% result in 110 (or any number greater
     than 100) when 100 minus 10 equals 90, which is less than 100?

     What is the connection between charging income tax and the money
     "having to" be used for charitable purposes?

     If some such money is not used for such purposes, the current laws are
     quite adequate to prosecute individuals who misuse the money.  If laws
     are not implemented, that is a separate problem.  Taxation does
     nothing to solve the misuse.

     What sort of tax system is envisaged under which people are first
     eligible to pay tax and, if they are "religious zealots" they can
     apply for tax relief?  What has religious zealotry to do with pursuing
     charitable ends?  Non-religious people such as myself can also be
     committed to pursuing charitable ends.

     In any case, your point of view does not answer my original argument:
     IPI is interested in "lean" government in exchange for specified
     services (which must be devolved to the people as often as possible);
     the idea of this sort of tax is completely against the IP position as
     it suggests a contribution to the government in exchange for no
     service on the part of the government, and it diminishes the ability
     of people to do something for themselves which they are already
     wishing to do and indeed doing.

     Far from enhancing IP's drive to increase social capital, such a tax
     will reduce what little social capital we have.

     Professor Prabhu Guptara
     Director, Organisational and Executive Development
     Wolfsberg Executive Development Centre
     CH-8272 Ermatingen
     Switzerland
     tel: +41-71-663.5605
     fax: +41.71.663.5594
     email: prabhu.guptara@ubs.com



______________________________ Reply Separator _________________________________
Subject: Re: UCC - specific laws
Author:  arvind.kumar (arvind.kumar@rocketmail.com)
Date:    16.04.1999 03:23


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[Topics under debate]: GOOD GOVERNANCE
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Charu wrote:

> Charitable contributions to religious organizations
shall not be tax
> deductible.

I whole heartedly support this. Prabhu Guptara's
concerns that charity work will be affected is not
worrisome. In fact charity work will get a boost
because all the funds which have been donated will
*have to* be used for charity. A religious zealot
running a charity organization would still be eligible
to apply for tax reliefs for that charity organization.
Just that he/she won't be eligible to apply for
tax reliefs for hoodwinking the public.

-Arvind



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This is the National Debate on System Reform.       debate@indiapolicy.org
Rules, Procedures, Archives:            ../debate/
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