Taxing Dilemmas: A Decade of Balancing Act in India’s Individual and Corporate Taxation for Social Equity and Economic Progress

Abstract

India’s tax rates over the past decade have been analyzed to balance social equality, economic competitiveness, and sustained progress. The government’s shift towards flatter tax structures aims to stimulate economic growth and promote manufacturing. However, the adverse effects of lowering corporate tax rates on ordinary citizens include widening income disparities, underfunding of social programs, job security decline, decreased government capacity, and impact on small enterprises. The government’s ability to fund infrastructure improvements, healthcare facilities, and educational programs is greatly impacted by corporate taxes. Small enterprises may experience increased competitiveness and financial strain, while major corporations may profit from lower tax burdens. To ensure a balanced economic trajectory, policymakers must continually evaluate and fine-tune the tax structure, considering the broader implications on social equity and the quality of life for the majority of the population.