Government humanity by renaming Income Tax Return ITR to Financial Security Statement FS

From a long time, I was thinking about the public distaste in filing tax returns and deep hostility with government as is evidenced by last day rush and public reluctance to it. I can although also see an improvement in perception but not sure whether it is local or global phenomena. As a thinker and consultant in field of management, this question becomes a challenge to my otherwise still mind.

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The point of view where I stand at this moment of journey in life, I see India as yet .. not come out of the crisis of philosophy in management of a state nation. Because of it carrying a colonial legacy, India unfortunately lived a mindset in governance that believed humans as resource like other raw materials and technology into production and consumption. These people has had least of idea that human character of Indian can be in fact, the aim of work; and how could an improvement in the character can convert waste, defect and defense into profit and prosperity, and joy with equality. Strategic (enemy) and defense approach of management (that aliens applied to natives in war) although increases economic development but shall forever deteriorate the civilization. Civilization is a system approach of management as against the traditional idea of strategic and defense approach. Civilization or system approach of character building, can reduce fear of one human with another, bring down temperature of fear and defenses in the environment and yet fuel the economic power house. And in my view, financial system and governance can be even more successful by system approach when compared to any strategic (war, enemy oriented) approach as is popular in the west including India.

Taxation in ideal term, should be not a coercion by colonial rulers on helpless public by an unequal agreement. This is strategic (enemy) approach of management applied in governance of a nation state. A sizable population of tax payers have had a popular story that tax paying public in India as thief and governments as dacoit. Dacoit is a public face with weapons in offensive as the laws, and landmines in form of plethora of procedures and multiple numbers of registration. Bechaara ... thief hides faces and secures his/her income by legally manufactured accounts and in shadow of defense of accountants and lawyers. Hide and seek is a game of corruption. TV advertisements of taxation czars were a proof of assumption 'taxpayers as thief', and one can perceive it as threatening and even abusive. Dacoit because of its sovereign (not accountable) status, it never was bound by specific policy of public tax in proportion to quality and quantity of public service and security, and cost of living. And on the other hand ... dacoits demand full and timely disclosure from the (tax paying) thieves.

In this context, it is often rumored in TV media that authorities and politicians illegally siphon sizable money in other countries, and are reluctant to bring it back, and a very small portion of taxes actually go to development of this nation state. Rajiv Gandhi innocently made a public statement of this state of corruption and inefficiency, and estimated how much of it is actually used in right way, out of income from taxation. Public service like hospitals, education, road and transport, electricity, communication and food are moving away in hand of markets and these every day... distances government and public in similar ways as cinema actors and audience. They know one another and yet pay for it, and not useful as one united. Rising cost of living and financial insecurity is a threat to public as well existence of a nation state. Capacity of the government in regard to public services in terms of accessibility, quantity and quantity in mindset of individual is obvious. India is full of history of financial failures and slavery.

One theory is that informal (friendly) economy ... operated most by family and friends .... has been a growth driver in India and elsewhere. Ideally, it should be true because informal or friendly economic relation only works on absolute trust and is an equal agreement between two private individuals. The legal or formal economy with government as third party .. is applied mostly in a corporate culture and these have strategic or war mind, that cannot be trust based, and here individuals have no rights of being a friend or in relationship of common interest. Here, record keeping and measurements and law.. act as safeguard in strategic (enemy) and defense approach of management, and cost of government rises. Cost of government and GDP of formal economy must be reducing step by step ...for promotion of formal, competitive or legal or unfriendly corporate culture replacing informal, trust based individualized economic culture. Informal economy and formal economy both have their strength and weaknesses. But, formal economy which is strategic (enemy oriented) management of corporations, is fierce and it cannot work without a robust yet kind laws and measurement as safeguard. In a long run, informal economy eventually becomes formal by infighting and conflict in large family sizes. Trust and War must therefore co-exist. Informal economy is not black money economics. Black money is the money that has no owner and it ceases to circulate either formally or informally. Black money is neither formal economy or informal economy and money becomes dead. The idea that money is black because it is hidden from records of government and taxes were not paid, is not a correct definition. Economy is not a government job, and private economy where paper money is not exchange tool and other unaccounted gifting or barters can too have a role in development. Because Government is interested party in development activity, it must attract by incentives to change over from informal to formal economy.

For family businesses and individuals, those not part of formal economy, have a certain fear in entering a hostile environment of formal economy. Gandhi would have preferred to live in non corporate and friendly way where governments and authorities and other inequalities are least needed and cost of government in avoided or brought to least. But for an economic growth by western definition, it is requirement to be rich and recognized to be rich by money. Corporate culture or formal economy is not panacea of peace but it makes organization and state act as one unit. The defense unites the weak.

For success of formal economy in India, human character is a hurdle. Character of authorities because of colonial legacy, have had questionable integrity and incentives of misuse of position of laws are societal status. Deterioration of public character in defense comes by default. India is a nation without character (dharma nirpeksh); and so is its official position ! Here, if an individual is given a power, misuse is guaranteed. In last years, use of computer technology in governance and in railways and where ever government has had human influence not in a desirable way, the results are very good. The quote that technology is bad master and good slave is applied in reverse order. It is new realization that people are less afraid of technology than a dharm nirpeksh or absense of character of humans in state authority. We hope this lesson is a hope for liberation of economy and civilization using technology in shoes of implementing a governance even though the human character remains whatever it is.

In order to have India a nation of friendly and civilized people where one human do not need to fear with one another, and yet become a strong nation to defend itself and can pay to an efficient government, a new way has to be found. Character of Indian pays an important role, and role of the government in treating public with respect. Government can have market or strategic (enemy) approach to be efficient and committed, and civilization and system approach as inspiration of human character. As a step in this direction, individuals must have self security in financial matters and this statement of financial security should be accurate and can be a basis of economic activity. This statement should be a self expression of assets, investment and savings and contribution to government in form of taxes. People should call it Financial Security Statement. This is not a taxation return but how much, one is financially secure given the use of India formal economic system. It makes a cultural change in mindset of governance and public.