Income tax & GST are wealth transfer tools from Middle class to Ultra rich

In India, the way taxes like **Income Tax** and **GST** work often leads to a situation where wealth gets transferred from the middle class to the ultra-rich. While both taxes are supposed to be fair, in reality, they end up hitting the middle class harder while letting the wealthy slip through the cracks. Take **Income Tax**, for example. It’s meant to be progressive, meaning the rich should pay more. But the truth is, the ultra-rich have ways to avoid taxes—through tax havens, complex investments, and other loopholes—while salaried middle-class folks end up paying a lot more in taxes, since their earnings are taxed directly at source with no room to avoid it. Then there’s **GST**, which is a consumption tax. This one hits the middle class the hardest, because they spend a bigger chunk of their income on everyday goods and services. The rich, on the other hand, can afford luxury items that are also taxed but don’t feel much of a pinch. **Big businesses also benefit by claiming input tax credits**, meaning they pay less tax overall, giving them an advantage over smaller businesses or entrepreneurs. So, while the system is designed to collect taxes in a fair way, the reality is that the ultra-rich have enough resources to avoid paying their fair share, leaving the middle class to carry the burden. To fix this, India needs to close these loopholes, improve enforcement, and make sure the rich pay their fair share. **Ultra High Net Worth Individuals (UHNWIs):** Individual investors with a net worth above Rs. 25 crore are considered ultra-high-net-worth individuals.