What is the cause of great gap between rich and poor ---------------------------------------------------------------------- Think in this way. If you think cycle is the poor man vehicle and car is rich man vehicle. If without government intervention anyway cycle is produced at a cost of Rs 1,000.00 and car at 100,000.00. The difference in poor and rich is 1:100. If poor want to become rich he has to work for a job that give 100 times of present. sellery he will become rich. Now government come and want to help the poor. Government subsidies Cycles to make it available to poor at a cost of Rs 500.00. If 99 people use cycle than government has to tax car for Rs 500.00*99 - 49,500.00 As every one knows that when people are taxed for Rs 100.00. than only Rs 10.00 reaches in government a/c. Now when government want to give this Rs 10.00 subsidy to poor than only Rs. 1.00 reaches to poor. hence Rs 1.00 subsidy government will tax the car for Rs 100.00 So for Rs 49,500.00 subsidy to 99 cycle will force the government tax car for Rs 4,950,000.00 In this way cycle to poor will cost Rs 500.00 and a car to rich will cost Rs 4,950,000.00 + Rs 100,000.00 = Rs 5,050,000.00. Now the gap between poor and rich will become Rs 500.00 : Rs 5,050,000.00 equal to 1:10100. If you compare both these ratio 1:100 to 1:10100. This means after government intervention the poor has to work 10100 time more harder to become rich against before government intervention of 100 time hard work. Against this if government has thought that car is a good vehicle so the poor must be able to purchase it than government has to tax cycles for car subsidy. Suppose government want to Sale car at Rs 90,000.00 than it has to tax 99 cycles for Rs. 10,000.00 And real tax on cycles will be 10,000.00*100 = 1.000,000.00 Hence each cycle has to be taxed for Rs 5,000,000.00/99 = 10,101 Now cycle will be sold at Rs 1,000.00 + Rs 10,101.00 = Rs 11,101.00 and car at Rs 90,000.00. Now gap between poor and rich is of 11,101 : Rs 90,000.00 equal to 1:8.10. Now poor has to work 8.10 time harder to become rich than previous ratios. Think and force the government to decrease the gap rather increase it. Every blog I write is always edited as per query of readers. So you will always find something new in the blogs. If you have any question than comment here I will give you an excellent response
Posted on: Mon, 21 Oct 2013 03:21:54 +0000
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