lolbob_fan Posted February 25, 2015 Report Posted February 25, 2015 The word "Co-operative Federalism" is thrown around all major news outlets today, describing the Fourteen Finance Commission. Either the media is sold out on the govt's idea of Federalism or really doesn't know what Federalism is. To begin with, its useful to understand what the original demand was. The AIADMK for instance, made it part of their election manifesto - a constitutional amendment so that revenue from the states through cess should be shared equally with the state in question. This is what a truly "Federal" proposal is. What the FFC did was raise overall share of states as a percentage. Though in all fairness, the report did mention that since amendment didn't look possible, they had to settle for a compromise. Another thing is, FFC has chosen to transfer more money than previously to all states combined. This was not the original demand. Its understandable why Dr YV Reddy decided to go for this, after all the commission doesn't have powers to amend the constitution. The FFC has a discussion on various requests put by the states, but it doesn't specify how it arrived on how much weight to put on each request. The result of all this: The taxes collected in Maharashtra, Tamilnadu, Haryana, will end up funding the poorer states. One could argue that this is progressive taxation, where tax money from the richer states fund the poorer ones. But this is nowhere close to what the media is describing as "Paradigm Shift in Federalism". Federalism is when unit of political discourse is the state. And in this FFC, it clearly states that unit of discourse is 'India', and not the states. Wish Jayalalitha wrote a strongly worded letter to Modi on this.
lolbob_fan Posted February 25, 2015 Author Report Posted February 25, 2015 Ath care v me too. about your aathcareness.
vaade_veedu Posted February 25, 2015 Report Posted February 25, 2015 Sounds good but why Modi is blamed for everything I dont think he proposed the word
lolbob_fan Posted February 25, 2015 Author Report Posted February 25, 2015 Sounds good but why Modi is blamed for everything I dont think he proposed the word because his election plank was "Federalism", and this is not Federalism.
lolbob_fan Posted February 25, 2015 Author Report Posted February 25, 2015 The title was ofcourse to get people to into the thread, although I'm sure most of them won't care to read it.
Bhalegunde Posted February 25, 2015 Report Posted February 25, 2015 thats not federal US lo kooda..some states get more than what they bring in.. mostly red states/southern states states like CA bring in more but take less from federal govt
lolbob_fan Posted February 25, 2015 Author Report Posted February 25, 2015 thats not federal US lo kooda..some states get more than what they bring in.. mostly red states/southern states states like CA bring in more but take less from federal govt nayana.. US states have the power to tax income, decide their own sales tax rates, none of which Indian states can do. There's no comparison at all. US states get to keep all the sales tax, sare na.
lolbob_fan Posted February 25, 2015 Author Report Posted February 25, 2015 Letting states keep half of the taxes collected by them is a start on the Federal path.
vaade_veedu Posted February 25, 2015 Report Posted February 25, 2015 Letting states keep half of the taxes collected by them is a start on the Federal path. But I dont think the taxes they decide and collect are unregulated..
lolbob_fan Posted February 25, 2015 Author Report Posted February 25, 2015 I'm still conflicted about GST, whether its good or bad for Tamilnadu
Bhalegunde Posted February 25, 2015 Report Posted February 25, 2015 states keeping their taxes was never in the horizon ee topic imagination india is a union of states..states cant secede like the US 32 to 42% is a good start based on requirements that is distributed across different states..
Bhalegunde Posted February 25, 2015 Report Posted February 25, 2015 nayana.. US states have the power to tax income, decide their own sales tax rates, none of which Indian states can do. There's no comparison at all. US states get to keep all the sales tax, sare na. ikkada point adi kaadu federal govt enthivvaalo decide chesthundi..share ani chebuthunna..even in the case of US
lolbob_fan Posted February 25, 2015 Author Report Posted February 25, 2015 states keeping their taxes was never in the horizon ee topic imagination india is a union of states..states cant secede like the US 32 to 42% is a good start based on requirements that is distributed across different states.. nuvvu ekkadiko vellipothunnavu. nenu raasindhi chadive opika ledhemo neeku. topic imagination kaadu. It was the single demand of TN, which is part of the FFC. I asked on what basis was TN's voice not heard? The entire discussion is in the report, but no mention of the methodology to arrive on this 42%. That India is a union of states is not a good argument. It punishes efficient states like Tamilnadu. Degree of Federalism can be constantly improved. What FFC essentially did, was give handouts. Politicians are so short sighted in India. CBN gave an interview expressing happiness at increasing state share of the income collected by the state. I can't even begin to understand why such spineless people become leaders.
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