As India’s income inequality worsens beyond British-era levels, majority want to tax the rich, study reveals

In a world where billionaires launch rockets to the moon while many of us are still trying to launch our WiFi connections, a survey has revealed a growing sentiment: it’s time to tax the rich. And as is the case with many things, Indians seem to be leading the charge this time as well.

The survey was conducted across 18 of the world's largest economies and paints a vivid picture of public opinion on tax reforms. As per the report, over two-thirds (68%) of citizens in 17 G20 countries are all for a wealth tax on the wealthy, while only 11% are opposed. The idea is simple – use the funds from these taxes to bring major changes to our economy and lifestyle.
Overwhelming support, including by Indians
Of these, 70% support the notion that income tax must increase on wealthy people, and 69% support higher tax rates on bigger businesses. Even in the United States, a country famously divided on the tax issue, two out of three surveyed supported a wealth tax on the ultra-rich.

Indians, alongside Indonesians and Turks, are leading the pack in support of this bold move. As per the survey, 74% of Indians are cheering for higher taxes on the affluent, suggesting that it's time for the rich to share a bit more of their pie.
Wealth tax could solve many issues
In fact, it isn’t just the public; many experts have also advocated for a wealth tax to address inequalities in India. In a recent paper, economist Thomas Piketty suggests imposing a 2% annual tax on net wealth that exceeds Rs 10 crore alongside a 33% inheritance tax on estates whose valuation goes beyond Rs 10 crores. Just this step could generate revenue amounting to 2.73% of our gross domestic product, while only affecting 0.04% of the adult population.

This extra bit of revenue could nearly double the current public spending on education and other social sectors, as per the authors. "In that respect, besides addressing extreme wealth inequality, such taxes could also play a small role in weakening the rigid link between social and economic inequalities in India," explains Anmol Somanchi in the report.

It may be notable to add that the same study by the World Inequality Lab has shown that Indian billionaires already own a disproportionate amount of the country’s wealth. As per the report, the gap in distribution of income in India is worse than during the British era.
Wealth tax on G20 agenda for first time
The Ipsos survey found strong support for using additional tax revenues for green energy projects, universal healthcare, and strengthening workers' rights. Even proposals like universal basic income, which might sound like something straight out of a utopian novel, attracted support from about half of the respondents.

As the G20 finance ministers prepare to meet in Brazil this July, the topic of a wealth tax is making its debut on the agenda. These leaders are tasked with tackling economic and environmental challenges, and it seems the public has handed them a clear mandate: redistribute the wealth, tackle climate change, and revamp the economy.

Access the full Ipsos research here.