Moving back to prehistoric taxes

Dire consequences loom ahead for the middle class as we go ahead into the new year.

Here are some of the issues that I see that are very worrying.

1. More and more subsidies are being dolled out and since there is no free lunch, the burden hits the people who pay the taxes... the service class and the middle class. 

Here are some interesting points

1. If you go out and have dinner in a restaurant ... we pay almost an additional 30% in taxes of the price in the menu card... and that really starting to hurt

2. Lpg price increase was announced today by 220 rs per cylinder ... a 50% hike!!! Amazing.. I don't think the prices in the international market have gone up by 50%... most of it is due to the fact that when we give something for free... someone else needs to pay for it

3. Cng in delhi has been increased to almost the same price as diesel. No way to treat an environmental friendly fuel... if something needs to be subsidized it should be this.

And there are many many more...

But what is happening is that because of the impact of these price distortions the actual taxes or "costs"  being charged to the middle class is taking these to the olden times of almost 80-90% taxes... and hence the issue of non declarations ...

What needs to happen is how we take out the non value added costs or hidden revenues ( do the parking people in malls show that as revenue?  Who does the checks )

Until that happens ... ensuring that our investment  keep earning more than basic inflation in india is of utmost importance.

Its simplefinancialsense.