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Tuesday, February 2, 2010

The common man everywhere - whether the US or here in India - feels its pinch. We are talking about the fact that some forms of income and different levels of income are taxed differently. As a result, the tax burden is not distributed equitably. If you are a salaried person, you would know what we mean. Warren Buffett has spoken about it for years. How the tax burden is more on his secretary than on him. US president Barack Obama seems to be listening. As per Bloomberg, Obama is seeking a US$ 1.9 trillion tax rise on the richest sections of his society. Incomes more than US$ 200,000 will be taxed more. So will be oil and gas companies, life-insurance products, investment managers and U.S.-based companies that operate overseas. While the specifics are complicated, as all tax laws are, there is an interesting message here. Distribution of wealth is critically important even in the Mecca of capitalism. Or does a financial crisis make socialists out of everyone?

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