Why not try expenditure tax as well? We have exhausted all forms of taxation. Where is the tool to extract more money from the people? Expenditure tax could also be pursued. The rich and the poor could be roped in at one go. Expenditure tax is a taxation plan that replaces the income tax. Instead of applying a tax based on the income earned, tax is allocated based on the rate of spending. This is different from a sales tax, which is applied at the time the goods or services are provided and is considered a consumption tax. Experts say there are four basic issues surrounding an expenditure tax: equal distribution between rich and poor, collection methods, tax brackets, and rates. The most obvious issue with this model is the difference in available income for spending. The lower the income, the more of that income is spent to meet daily needs. Saving is a luxury that is only possible after all spending needs are met. This model would have the wealthy, who have more income available to save, and thus shelter from tax than the poor and working classes. To address this issue, adjustment mechanisms would need to be built in to the tax reporting process for people with lower incomes.

Systemic changes needed for instant implementation of budget proposals There was a comment about Railway budget proposals that it would take fifty years to implement the suggestions. Therefore, the point is clear, there should be a systemic change to realise actual implemenetation. Finance Minister P.Chidambaram says the women's bank with a start-up capital of Rs 1,000 crore would be set up this November. If that happens, it would be a wonder, in India which is in a quagmire of procedural wrangles otherwise. We speak about 80,000 crore for rural development, Rs 1,000 crore for women's empowerment, Rs two lakh crore for defence and the like. But when it comes to actual implementation a year, the figures would be much less. When the world is moving at rocket speed, our snail's pace implementation would only add up to all sorts of deficits, fiscal, current account, and so on. But there would be cut-back on confidence, added inflation and frustration all around.

Mani is having fun; it should be a nice feeling being invited by rivals Kerala Congress (M) supremo K.M.Mani is definitely enjoying the fun of it all. Initially, the CPM said something would be done to rattle the UDF bandwagon. Then, none other than V.S.Achuthanandan said Mani is welcome to the LDF fold. Now Pinarayi Vijayan says there is no such decision to welcome Mani. Vaikom Viswan says only those who have similarity of views would be accepted. Could the game-changer be that simple? Mani has nothing to gain unless he is offered Chief Ministership. Would the CPM come down to that? Would LDF allies agree to this? Will K.M.Mani's own MLAs in full accept this proposal? Several imponderables are there. Suppose there would be a third front government at the Centre after the Lok Sabha elections. Changes could come easily then.

The late K.Karunakaran might be the only political stalwart who had taken criticism in his stride The late K.Karunakaran was probably the only political stalwart in Kerala who took criticism in his stride. Those times,when a multitude of television channels were absent, newspapers used to tear him to pieces when he was Chief Minister and otherwise. He wouldn't mind even calumny against him. For a fact, it should be noted that the very concept of the UDF then was based on protecting the interests of various communities. Karunakaran would visit Guruvayur temple every first of the Malayalam month of Chingam. That was the way of his passion about Hinduism. But then, he was close to various community leaders. And they trusted him. With regard to J.C.Daniel not having been accepted as the first Malayalam film maker, some confidantes of Karunakaran might have told him that his was not a talking film in Malayalam and that was that.

Terrorism is lurking everywhere; no one knows when it would strike We may not know, terrorism could strike in our backyard. Everywhere its tentacles have a strong-hold. The attacks could be in Delhi, Mumbai, Bangalore, Hyderabad or any other place. The powers-that-be appear to have intruded into almost every echelons of our society, masquerading in different forms and entities. The US has always been criticised for seemingly oppressive forms of search, questioning and detaining suspects. But then, it has contained the menace quite well. Now what is haunting the US is trigger-happy gun firing only. In India, because we are so liberal, to the extent of being unique in the world, any terrorist can pass as ordinary citizen, hoodwinking the authorities. Now reports say Indian Mujahideen leader Yasin Bhatkal was in the custody of Kolkata police in 2008 in disguise. Another report says he has two Malayali accomplices with him. The cops had no idea that the person in custody was Yasin Bhatkal. That drives the point home that there should be a federal set-up to deal with terrorism. But no one even speaks about the National Counter Terrorism Centre. There should be co-ordinated efforts to nab terrorists infiltrating the society.

Add your Comment Paradoxes of democracy, capitalism; no one paying heed to the real issues I have always been perplexed by certain issues which confront our democracy which is fast leading to comrephensive capitalism. Liberal ideas, free speech and unfettered articulation, business and the like are, no doubt, far better than totalitarianism and suppression of independent thinking. But some of the real issues confronting the people, the society, the workers are looked askance at. One has to look at the welfare provisions existing in developed nations. There are nation-wide social security networks in all such countries. We have to have a nation-wide social security department giving social security numbers to each and every family and individual. When one finds himself or herself without gainful employment, the social security department comes into full play and provides minimum decent living expenses and amenities. Children are provided good amounts for health and education. We have this MNREGA and other minor welfare schemes. But we have not thought of providing a social security number to each individual. The system of unique identity number should be provided to all first, and then this should be used as the base facility for comprehensive social security measures. Another paradox is the free-for-all of employers, that is in the system of capitalism everywhere. That system has come into being in India as well. Employers, after careful procedure of finding merit and qualification, give jobs to youths. After some time, by mismanagement or otherwise or non-profitability, they announce that they cannot retain so many of the employees. Okay, some of you have to leave the organisation. This is sheer one-sidedness and unilateral application of mind. The courts also do not take cognizance of the real problem. No one, after selection and infusion into service, should be thrown out. First, all avenues of non-profitability should be probed and the real issues found out for correction. If the managers, including owners, are found to be at fault, they have no right to ask the employees to clear out. Mismanagement, if any, should not be tolerated. Wasteful expenditure and lavish way of living of the management, including owners, should be scrapped. If nothing works out, the losses should be evenly distributed, without asking the employees to quit. If everything goes awry, there is no right for the company or institution to continue. Let this be wound up. Let all the parties share the burden. Will anyone take heed to this sort of justice?

Temporal powers and spiritual powers are with him, but he has no qualms about stepping down People occupying some posts and enjoying the power should give attention to the grand gesture of Pope Benedict XVI who has temporal and spiritual powers bestowed on him. The keys of heaven are his, in his capacity as the successor of St Peter. No doubt, temporal powers are unfathomable in his capacity as head of the 120 billion -strong Catholic faithful spread over all the globe. For more than six centuries no Pope abdicated his position, be he hale and hearty or bed-ridden. In the world which is teeming with leaders who cling on to even vestiges of power, this gesture of calling it a day when he can stand up and walk around, is unique. When all seems to be lost with the world for values, ethics and justice, lo there is a silver lining. Everyone would admire his gesture.

Merry-go-round of plea for action, no-action likely with regard to VS The merry-go-round of the state panels of the CPM demanding strongest punishment for V S Achuthanandan and the central leadership looking askance at it could, in all probability, repeat. V S Achuthanandan knows it for a fact that no action could be taken against him, if the party wants not to create worst problems. By the basic standards of discipline, V S Achuthanandan could have been expelled for his forthright comments in the media against the state leadership. But the party, which did not think twice in expelling Somnath Chatterjee, has been dilly-dallying with regard to V S Achuthanandan, who is convinced that he has been provoked. Gradually, the CPM may also be convinced that it is like any other party regarding disciplinary action.