Exodus of the Rich?

A recent report on a statement by a worthy on 'too much tax terrorism', and the resultant exodus of HNIs (high net worth individuals, or the ultra rich) out of India, generated a heated debate.

This was also commented upon by a well knowm media personality.

Some of the reactions to the referred statements were like: 'If one includes the fast route for US and European visa, that will be as much as this and in addition the normal immigration visa offered by Canada and Australia.  Clearly the expectations is what am I getting for the contribution made in the form of taxes or hardships.' (emphasis supplied)

Now, in this global village, nobody begrudges the legitimate decisions of certain HNIs to shift base to greener pastures (sometimes after squeezing the Indian market for all potential opportunities, and getting all gung ho about India being a 'vibrant economy' and all that!).  One part of my mind (the impulsive one) tends to agree with the action and sentiments, what with it being a year-round hastle to optimise personal taxes, with seemingly usurious rates applicable otherwise.

But, perhaps because of my background in social development sector, there's another part of my mind which says such hankering after tax concessions is nothing but the fulminations of the already privileged seeking to further enhance their advantage, due and otherwise.

The issue is, have the rich (who're naturally the ones seeking to flee India if their demands for lenient taxation are not met) really earned all their income and wealth without any innate advantages or privileges bestowed on them (or, in many cases, wrangled by 'managing the environment')? Isn't their income and wealth at least in part (sometimes substantially) attributable to their privileged birth, education and other advantages either inherited or bestowed by the powers that be (if not by virtue of family background/social class)? I'm aware that this is akin to the argument advanced by the Ambedkarites in favour of perpetrating reservation, again something on which there could be two views, diametrically and violently opposed to each other.

Ñow, in contrast to the rich of a few generations back who mainly inherited their wealth (and doubtless enhanced it, though in some cases also squandered it!), the noveau rich and startup founders probably have a stronger claim to being 'self made millionaires/billionaires' who, as a corollary, don't owe anything to society or (taxes to) govt.  But try telling that to those living in urban slums or children of countless farmers, landless and otherwise, who for no fault of theirs (discounting both inherited wealth and inherited penury!) are forced to toil away without any visible progress across decades or even generations.  All while the future startup founders are reaping the benefits of a stable family, economic and educational environment courtesy their 'creamy layer' status (with no allusions to backwardness of any hue).

So, the threatened exodus sounds, especially to the underprivileged, like the Amazons and Googles of the world exploiting their workers at one end and avoiding taxes by basing themselves in tax havens at the other end.  As if only they've a God-given right to earn and enjoy the privileges of wealth!

Perhaps the only factor vitiating the argument against the fulminations of the rich is rent-seeking politicians making high promises to the poor but actively perpetrating leakage of public resources garnered through taxes by graft and inefficiency, something which doesn't seem like going away in my lifetime.

And that's a sobering thought...