Tuesday, November 8, 2016

There, the India thing

Yahoo: India's economy - and its tax base - has long been hobbled by a culture of what is known here as "black money," with business people using cash to avoid paying taxes. Raids on corrupt politicians and businesses regularly turn up people holding millions of dollars' worth of rupees, with cash sometimes filling dozens of boxes.

The issue to me was why did India change its denomination?  The corruption thing is not drug dealing, but tax avoidance.  In the article you find a lot of everyday people were quite bothered by the thing, it was a bit complex.

But, you see, the induced volatility may make graft worse if the tax system is horribly inefficient. See, it is not clear, yet, who is the more efficient, taxers or tax avoiders. I dunno, not my specialty. It is simply not an easy read.

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