39% income left to spend

Good analysis. Interesting more  

rest of our income stays in Bank and Govt utilises it......Govt should not tax the amt in the bank at least more  

To answer Arun's primary query, you are right! There are two measures on what really happens in public revenue (read, government money). One, how much of every rupee that you earn, you pay to the government? Second, how many times this one rupee changes hands in a year. That is, I earn one rupee and I pay a part of it to the government. Today, we pay the government in multiple ways. One of them is tax and then there is another part which we call as a non tax revenue to the government. First, of course is the tax revenue which is primarily the Income tax and GST among many others. This together would vary from 20% to 50% depending upon your income. If you are on the max tax bracket of IT, you will end up paying around 50% of your 1 rupee on an average. Non-tax revenue are things like mining rights, tree cutting rights, bandwidth rights, etc., These are indirectly collected from every one of us. Apart from this, Provident Fund (24%) is also a major source of revenue to the government. You will pay another 25% approx to the government under this category. You pay this whether you are rich or poor. That means, for every rupee that you earn and spend, you pay to the government 50 to 75% or 50 paise to 75 paise to the government kitty. Every time you use your cell phone, for instance, you are paying bandwidth charges apart from GST that appears on the bill. Even if you buy a pencil for your kid, you are paying charges for tree cutting rights, mining rights for the core that goes into it! Every product you see, has this non-tax component in it! Essentially, it means that every time some one earns one rupee, the government gets about 50 to 75 paise or we can average it to 62 paise for ease of understanding. The second measure is how many times this one rupee changes hands. This is called the speed of money. That is in a very vibrant economy, a growing one or a grown one, money changes hands at least 50 times in a year. Minimum change of hand measured is about 12 times in very slow economies. We will take the slowest for our consideration. That is, one rupee that you earn, you use to buy something from someone and that someone pays to another who pays to another and so on. This we are taking the minimum measure of 12 in a year, though it is a very slow economy which we are not really. This means that every rupee that is earned by you is actually changing hands 12 times in a year and the government gets 62 paise out of it every time. Or in other words, government makes Rs.7.44 from every rupee they have minted or deemed to have minted (electronic currency). more  

except using toilets at our houses, everything is virtually taxed to pay the MLAs and MPS aa hefty salary and perks. it is not worth living in this country with unundestandable politicians. the very same Mr Jeiltly asked for IT exemption upto 5 lacs in 2014 and how come now he is not willing to raise it even by 50K. this is aa maost hypocritical politicians. we continue BJP only becoz of that good man Mr Modi. till now we have had only one good and outstandibng finance minister in Dr.Singh. unfortunately he is in the opposite camp. Mr Chidaambaram and Mr Jaitley are both aborn with billions and their declared assets are in billions and how cana we expect theme to understand the plight of common man. when we and our income iz rob bed(taxed) at every stage like gst etc etc, why should there be an aincome tax. atleast the income upto 10 lacs should be not taxeds so that that much money come into the market and goes in production and goods and services which gets as much as 28%. anayhow what we say are going to faklkl only on deaf ears. If Mr Modi does not pay aTTENTION TO THIS genuine p[roblem of middle and salaried class, surely they will not have majority in the forthcoming elections though we very wish mr modi to return. more  

I think, Deenaz is going the opposite way! One of the reasons why our local services such as roads, water supply etc., is poor because we do not pay them directly. Major chunk of the local body revenue comes from central and state taxation. Therefore, the person who collects money is NOT the person who delivers service. Therefore, the service levels are poor. If on the other hand, you say, tax is collected at the local level only and they pass a share to the state and to the central government, bottom up, then there will be better service from all the concerned parties. The real democracy would only work that way and not top down which is more or less like the 'rule of the king' or a 'dictator'. We have a say only once every five years and the rest of the time they can do whatever they want. more