Re: Charunomics....

[vamsi@siliconcorp.com]

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    There is no irony here, my friend - just a slip of the mind.  Isn't black
money a result of over-regulation?  That is, our entrepreneurs will find a way
to cheat the Government when it becomes overbearing.  Take this, for example:
if a shop owner has to pay 1% tax to the Government on his sales as opposed to
double digit....the risk of evading this 1% tax is greater than it - if he is
caught he may have to pay penalties greater than the tax itself and hence it
makes sense for him to pay the task.  The current tax formula is actually
incentive for the store owner to evade some, if not all, Government taxes.

    Nonetheless, Charunomics is fun to indulge in.

Sincerely,
Vamsi M.

Charu datt wrote:

> I was pointing out that it is rather ironic [and inconsistent] to rail
> against the black market while advocating unregulated markets
> since the black markets are entirely free from regulation.
>
> -Charu


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