tag:blogger.com,1999:blog-19649274.post551821882845877707..comments2024-03-29T12:03:50.891+05:30Comments on The Leap Blog: Taxing investors to pay NGOsAjay Shahhttp://www.blogger.com/profile/03835842741008200034noreply@blogger.comBlogger13125tag:blogger.com,1999:blog-19649274.post-52430611464797712232013-11-17T13:33:01.699+05:302013-11-17T13:33:01.699+05:30If the CSR activities of Wipro, Tata and so many o...If the CSR activities of Wipro, Tata and so many others are any indication, the returns from CSR activities may be quite high.InjunJoehttps://www.blogger.com/profile/01285208752497199221noreply@blogger.comtag:blogger.com,1999:blog-19649274.post-85240009809129470792011-12-07T01:12:04.172+05:302011-12-07T01:12:04.172+05:30Hi Ajay, I get your basic point and agree in princ...Hi Ajay, I get your basic point and agree in principle, but I do not agree with your economic analysis - "Foreign investors and domestic investors have choices about where to invest." - true. "They will demand that firms only invest in a smaller set of high-return projects, which are competitive on the rate of return by global standards, even after being taxed." true - how does the 2% expense on CSR change that. "In other words, many projects will not be undertaken." - It is a general outcome for any taxation, not specifically the mandated CSR. May I suggest that what you need to clearly demonstrate is that after taking into account the costs and benefits of the positive/negative externalities derived from such a 2% mandatory CSR, the net benefit will still be negative. Such an exercise would clearly demonstrate your point. Cheers - AmarAmarhttps://www.blogger.com/profile/14165510402693927548noreply@blogger.comtag:blogger.com,1999:blog-19649274.post-84837726825938798742011-12-02T10:51:43.799+05:302011-12-02T10:51:43.799+05:30“The Vedas speak of both pravrtti, outward orienta...“The Vedas speak of both pravrtti, outward orientation, and nivrtti, inward reflection. It is one thing to “look out there” and see where money might be made, but it’s another to “look within myself” and find my inner integrity so that my efforts as seen within not only an economic, but also a social and ecological context.” – Dr. Charles JacobAnonymoushttps://www.blogger.com/profile/03194136531142475689noreply@blogger.comtag:blogger.com,1999:blog-19649274.post-42577049444740585722011-12-01T11:59:25.232+05:302011-12-01T11:59:25.232+05:30Another example of rent seeking by government that...Another example of rent seeking by government that will ultimately impose a deadweight loss on the shareholders, consumers and employees.Ekta Selarkanoreply@blogger.comtag:blogger.com,1999:blog-19649274.post-48691701407668491182011-11-30T13:38:58.534+05:302011-11-30T13:38:58.534+05:30I have a slightly different take on CSR. A sizeabl...I have a slightly different take on CSR. A sizeable number of corporates prefer CSR to higher taxation, which is the only way for a government to fund the social responsibility. The reasons are simple with government the decision as to type of project, its locale and quantum lie with the Government and the differences of State and Centre come to fore. With CSR the Corporate House can oblidge the choosen locale (read constituency) as per its business interest. So in a way CSR in Indian perspective is helping the business houses in promotion of their interests.Vijayhttps://www.blogger.com/profile/15216026147546997914noreply@blogger.comtag:blogger.com,1999:blog-19649274.post-20950316821283324342011-11-29T15:16:20.083+05:302011-11-29T15:16:20.083+05:30You are a learned professor,but it is not a good w...You are a learned professor,but it is not a good way to describe Mr. Anna Hazzare's method. You can disagree with his methodology, you should not call him "trouble".<br /><br />This regulation will force the company to do something for society, but my guess is that other payments (bribes/commission) for corporate lobbying for favorable conditions/rebate/pricing etc will go through 2% of profit to NGO run by politician or their kin. But I am not sure.Santoshnoreply@blogger.comtag:blogger.com,1999:blog-19649274.post-36165290940294407062011-11-28T15:16:08.865+05:302011-11-28T15:16:08.865+05:30I absolutely agree with Ajay's point. However ...I absolutely agree with Ajay's point. However I think, 2% tax for CSR looks injust and bad because, we are only looking at one leg of a very large and complex structure. IF we were to say that none of the corporates get any undue favors from Govt. in the name of dev, investments, job createtion, our obsession with GDP growth rate then this tax is bad. However we know for a fact that corporates in India have access to govt and policy makers, whereas the bleeding hearts have no voice. So in an indirect way this 2% kind of offsets the premium for proximity to the Govt and ability to get things done in your favor.Neerajhttps://www.blogger.com/profile/14007327243911492672noreply@blogger.comtag:blogger.com,1999:blog-19649274.post-80455884541994469742011-11-28T09:49:16.802+05:302011-11-28T09:49:16.802+05:30Keynesian economic theories are the source of curr...Keynesian economic theories are the source of current economic woes, educational institutions need to teach mises and libertarian theories too. Necessary to reduce omnipresence of the state.Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-19649274.post-69968350180051702432011-11-26T21:49:51.767+05:302011-11-26T21:49:51.767+05:30Sir, don't _want_ to agree with you here, but ...Sir, don't _want_ to agree with you here, but I know what you're saying makes logical sense. One must be hard-headed in affairs of state and in finance. Cold logic is the only principle behind financing of projects India sorely needs. Agree with that. Corporates need not operate on charity, even for a tiny bit, it's the shareholder's prerogative above all. Too often this simple principle is overlooked in the zeal and enthusiasm to 'help' people. The Gujarat's Govt.'s ill-advised proposal to tax Gujarat-based companies (30% of profits) towards welfare comes to mind. Agree, CSR is good, but not at the expense of the state not doing it. <br /><br />Two (potentially unrelated) points come to mind:<br />1. What about the VGF that the Govt. provides to infra companies, ostensibly to ensure positive IRRs to start projects? Why? How are the VGF amounts decided? Aren't our infra companies large enough to undertake such projects without Govt. support? Can this be construed as 'corporate charity'? <br /><br />2. Why can't CSR activities be profitable? Or rather, why certain activities undertaken by companies be contrued as CSR, given their contribution to the society? <br /><br />IT companies today run training centers for college-grads they select. A company in the chemicals sector has links with chemical engineering departments of IITs for a research chair, a grant for research projects. Similar activities (IBM's research lab at IIT Delhi comes to mind too) are IMHO as much CSR activities as cleaning up the beach, or teaching primary children.Tirthankar Patnaikhttps://www.blogger.com/profile/13336758565572173213noreply@blogger.comtag:blogger.com,1999:blog-19649274.post-48936520811492063762011-11-26T13:23:57.346+05:302011-11-26T13:23:57.346+05:30looks like im the only one agreeing with u thus fa...looks like im the only one agreeing with u thus far.. <br /><br />excellent article.. but these are times of fantastic outcomes, so in times like this people do not ask for equality in opportunity, they ask for equality in outcome.. !Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-19649274.post-23149144583508177012011-11-26T05:05:13.883+05:302011-11-26T05:05:13.883+05:30The message is loud and clear. In a State, the Gov...The message is loud and clear. In a State, the Government must act as catalyst to promote the basic role of its organs rather than distorting it. Moreover, forcing one organ to grab other's share cannot be justified.Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-19649274.post-83967993492300044872011-11-26T00:06:51.709+05:302011-11-26T00:06:51.709+05:30"When a country is run by bleeding hearts&quo..."When a country is run by bleeding hearts"<br /><br />Quite obviously, the country is not run by bleeding hearts!<br /><br />"...so we get trouble like Anna Hazare"<br /><br />Lets bring on more trouble of that kind. I see him as the only one who is taking the problems head on, even though not suggesting the optimal solutions and using arcane methods. He's the only one who's got the Pawar incident right! He's the only one who talks about the govt needing to be for the people. And, he's flexible, willing to change his views and his people. The Lokpal is irrelevant, but he's also talking of electoral reforms. Who else is talking about electoral reforms or who else can talk about electoral reforms in India? For him to be successful, its not that his views need to prevail, but his marginal impact on government and politics should be positive. If nothing, his failure and this detour should be educational.<br /><br />"We fail to teach economics, so we get Sarva Shiksha Abhiyaan and the education cess."<br /><br />Don't worry, the govt will propose a Sarva Economics Shiksha Abhiyan and a national economics institute soon (with the appropriate kickbacks to all the cronies - capitalists or socialists). Sarcasm intended.Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-19649274.post-15784517715033862272011-11-25T23:03:08.979+05:302011-11-25T23:03:08.979+05:30This may be a most under-analyzed article you have...This may be a most under-analyzed article you have written. You are just stating your bias, not arguments. You have also not stated the way of "fixing the core mechanisms of the State". I am totally unconvinced.Anonymoushttps://www.blogger.com/profile/11432726417561187916noreply@blogger.com