Sabeer Bhatia argues that India should consider a 55% inheritance tax, on the premise that opportunity should come from what people build rather than what they inherit.
But there is a fundamental distinction between inheriting opportunity and inheriting the fruits of a lifetime of work.
A person in India spends decades earning, paying taxes, buying a home, saving and investing — not merely to accumulate wealth, but to ensure that his children have some measure of security after he is gone.
In a country where families routinely have to provide privately for education, healthcare, retirement and their children’s future, a 55% claim on an estate would effectively mean taxing the same family wealth again at the point of death.
If the objective is to create opportunity, the question should be how to expand opportunity for those who have none — not why a parent should be prevented from passing on what he spent a lifetime legally earning and already paying taxes on.
There is a difference between reducing inherited privilege and confiscating inherited security.
The two should not be conflated.
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