New Delhi:
In a stunning own goal that has pushed the Congress on the backfoot, senior party leader Sam Pitroda today stoked the debate over the BJP’s allegations that the Congress is planning a redistribution of wealth. Mr Pitroda’s example of an inheritance tax in the US added fuel to the fire that the Congress has been trying to douse.
The Congress distanced itself from the senior leader’s remarks and said they do not reflect the party’s position. Congress’s Jairam Ramesh said in a social media message that “sensationalising” Mr Pitroda’s comments is aimed at “diverting attention” from Prime Minister Narendra Modi’s “malicious and mischievous election campaign”.
Mr Pitroda, too, came out and said that he made the remarks as an individual. He said it was unfortunate that the comments were twisted “to divert attention from what lies PM is spreading about Congress manifesto”.
“I mentioned inheritance tax in the US only as an example in my normal conversation on TV. Can I not mention facts? I said these are the kind of issues people will have to discuss and debate. This has nothing to do with policy of any party, including Congress,” he said. “Who said 55% will be taken away? Who said something like this should be done in India? Why is BJP and media in panic?”
What Did Sam Pitroda Say
Mr Pitroda spoke to news agency ANI on the Prime Minister’s attacks on the Congress manifesto and his allegations of a wealth redistribution plan.
The manifesto calls for a nationwide socio-economic and caste Census to provide the data foundation for affirmative action. It does not, however, mention any wealth redistribution plan.
Mr Pitroda, chairman of Indian Overseas Congress, said the Prime Minister thinks that the Indian audience is a fool and can be manipulated easily.
“No Prime Minister would speak like this. Earlier I thought it was an AI-generated video. PM thinks the Indian audience is a fool and can be manipulated. He is not above the law. The manifesto of Congress is very well-drafted. To say that they will steal your gold and Mangalsutra. You are making stories up on your own. I think it is maybe due to fear, panic has been set in after the first phase. India is angry at the PM’s comment,” he said.
The Congress, he said, has always focused on the people at the bottom of the economic pyramid, whether they are OBCs, Muslims, Dalits or tribals. “Billionaires don’t need our help. It is the poor people who need our help. Inequality has substantially increased in the last 10 years,” he said.
“This doesn’t mean that you are going to take your wealth and give it to somebody. This means to create new policies so that the concentration of wealth can be prevented. It’s like a Monopoly Act,” he said.
He then cited a US example. “In America, there is an inheritance tax. If one has 100 million USD worth of wealth and when he dies he can only transfer probably 45 per cent to his children, 55 per cent is grabbed by the government. That’s an interesting law. It says you in your generation, made wealth and you are leaving now, you must leave your wealth for the public, not all of it, half of it, which to me sounds fair,” he said.
It is worth pointing out that the US does not have a federal inheritance tax. In some states, such as Iowa, Kentucky, Maryland, Nebraska, New Jersey, and Pennsylvania, inherited assets are taxed. The payable tax depends on the amount of the inheritance and the relationship to the dead. This tax is only applied above a certain threshold and can go up to nearly 20 per cent of the inheritance.
