Investing leads to nation building. We are investing in to a business that generates jobs and contributes to the GDP. But what about trading ? Just pure simple ultra short term buying and selling of stuff at the stock exchange.
Recently a fellow trader told me we are not doing anything for the economy by trading. We are just filling our purse. But then I showed him the following - Rs.53525 as tax on my realised profit
That’s how much was given to the govt because I bought and sold options at NSE for the last 5 yrs. Not to mention the additional 30% tax on my trading profits. This is like a direct line of continuous liquid credit to govt. I think traders need a bit more of veneration than what is usually dished out to them.
What do you guys think ? Would love to know your opinion.
- I am / want to be a trader and contribute to nation building
- I am / want to be an investor and contribute to nation building
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The taxes in our country is actually on the higher side for such trading-related activities. Besides, I value investing more as I and the taxes are better there.
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That’s the beautiful thing about any Capitalist system. You are helping your fellow humans even when it is not the intended purpose.
Encapsulated in the entirety in this iconic quote from The Wealth of Nation by Adam Smith :
It is not from the benevolence of the butcher, the brewer, or the baker, that we expect our dinner, but from their regard to their own interest. We address ourselves, not to their humanity but to their self-love, and never talk to them of our own necessities but of their advantages.
That said the role of taxation has changed since money lost its intrinsic value. Its role is no longer to redistribute but It is to keep the different monied classes in check, and with that in mind, lowering taxes should be the demand of anyone. This “Nation Building” narrative is just a band-aid the powers-that-be use to lower the pain of the pockets they are taking from.
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Man! There was a day I felt like this. From what i earned, firstly 30% taxes disappeared, same day evening went for a restaurant which billed 5% tax on whatever i ate, then bought few pairs of outfits which is now 12%, other expenses as well everything involves inclusive taxes, fuel ? Saw recently it’s around 70% only for governments state and central.
I see it as, I’m making a cake and i get piece of it. And if business falls into losses. You’re right!
Hell thing is here. Not sure should i be loyal to country’s incometax department or be something else.
