Kashmir Solution: Let the state collect personal income tax
I am sure you must be thinking how we can solve Kashmir problem by letting Indian states collect personal income tax. It is simple. First, Root cause of Kashmir problem is not external, but it is internal. The root cause is state subject law. It does not allow non-kashmiri people to become citizen of J&K. Same problem exists in north east states.It is natural that state dont want to share their limited resources with more people. There is no incentives for them to do so.
Now let me guide you, how letting states collect personal income tax will solve these problems.
State personal income tax will be incentive for the states to welcome qualified, high income earners people in their state.
In the beginning, Kashmir and north east states will grant full state subject hood for all the people living in their territory, just in the hope to collect more income tax, knowing that state can not force them to leave the state.
In next phase, it will invite educated, high income earner professionals to live the state. It will also invite businessmen to setup companies in the state so that state can collect personal income tax from employees. Believe me, state govt will find ways to do this , irrespective of their political positions.States will also try to improve law and order situation to attract more income tax.
Now the most important stuff, put this proposal in GST bill. It will sail through easily and India will become one market and it will become stronger overtime by creating competition among states to attract high income earner Indians. One more step for cooperative federalism.
I am sure you must be thinking how we can solve Kashmir problem by letting Indian states collect personal income tax. It is simple. First, Root cause of Kashmir problem is not external, but it is internal. The root cause is state subject law. It does not allow non-kashmiri people to become citizen of J&K. Same problem exists in north east states.It is natural that state dont want to share their limited resources with more people. There is no incentives for them to do so.
Now let me guide you, how letting states collect personal income tax will solve these problems.
State personal income tax will be incentive for the states to welcome qualified, high income earners people in their state.
In the beginning, Kashmir and north east states will grant full state subject hood for all the people living in their territory, just in the hope to collect more income tax, knowing that state can not force them to leave the state.
In next phase, it will invite educated, high income earner professionals to live the state. It will also invite businessmen to setup companies in the state so that state can collect personal income tax from employees. Believe me, state govt will find ways to do this , irrespective of their political positions.States will also try to improve law and order situation to attract more income tax.
Now the most important stuff, put this proposal in GST bill. It will sail through easily and India will become one market and it will become stronger overtime by creating competition among states to attract high income earner Indians. One more step for cooperative federalism.
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