On Saturday, in an election meeting, Rahul Gandhi said that if Congress came to power, they could redistribute the wealth of India.

Rahul Gandhi is the former president of the grand old party and one of the most important opposition leaders. However, he sometimes forgets his aura and intellect and puts himself in the centre of attraction when he speaks. He has always been a part of political discussion for his rhetoric, and once again, it happened. On Saturday, in an election meeting, he said that if Congress came to power, they could redistribute the wealth of India.

If the Congress is elected, the party would survey to determine who is the country’s wealthiest person and a redistribution exercise. “To determine the precise number and status of minorities, backward castes, SCs, STs, and others, we will first carry out a caste census. The institutional and financial survey will then start. Then, based on their population, we will undertake the historic task of allocating the wealth of India, jobs, and other welfare schemes to these segments,” he added.

Concept of Wealth Redistribution

This concept of wealth redistribution is taken from Karl Marx’s 1848 “s book Communist Manifesto. The transfer of income and wealth (including material property) from some people to others via a social mechanism, such as taxation, welfare, public services, land reform, monetary policies, confiscation, divorce, or tort law, is known as redistribution of income and wealth and usually used about redistribution within the economy as a whole, as opposed to between specific individuals.

Is wealth redistribution possible?

Numerous nations have previously chosen to implement wealth redistribution programs in various ways. While the United States of America uses taxes and transfers with the same level of progressivity, nations like Finland and Sweden have relied on progressive transfer systems. India also has a progressive tax system in which the wealthiest pay at least 30% in taxes, with a significant portion of that amount going toward welfare programs for the underprivileged. Cash transfer programs are also included in these redistribution initiatives.

Progressive Tax

A progressive tax is one in which the tax rate rises (or progresses) in proportion to the increase in taxable income. It applies a higher tax rate to individuals with higher incomes and a lower tax rate to those with lower incomes. Usually, tax brackets that divide taxpayers into income-based groups are used to accomplish this.