Taxing the rich for the poor is good economics: Siddaramaiah

Chief Minister Siddaramaiah on Wednesday defended the Congress’ five guarantees as “good economics” and that he believes in taxing the rich for the welfare of the poor.

Siddaramaiah elucidated his brand of economics during his reply to the motion of thanks to the Governor’s address in the Assembly.

“By taxing the rich and using that money for the poor to empower them economically and socially...that’s what we’ve done with the five guarantees. We’re giving economic and social strength to the poor,” Siddaramaiah said. “This is good economics. This is the economics of self-respect,” he added.

The CM said JD(S) state president H D Kumaraswamy had coined the term “Siddanomics” to describe his approach towards the state finances.

“I don’t know what that is. There’s no book like that. There’s only good and bad economics. Is there Basavarajnomics? Kumaraswamynomics?” Siddaramaiah said, referring to former chief ministers Basavaraj Bommai and Kumaraswamy.

Siddaramaiah said corporate tax was 30% when Manmohan Singh was prime minister. “After Modi became PM, corporate tax came down to 22.5%. In whose favour is this (BJP) government?” he said.

“We will tax the rich. We will increase taxes on the rich as per law. That money will be used for the poor. That’s what we’ve done during our regime with the five guarantees,” Siddaramaiah said, adding that the government kept Rs 39,000 crore in 2023-24 for the flagship programmes. “For next year, I’ve allocated Rs 52,009 crore for the guarantees, which will cover the poor, Dalits, backward classes and minorities without discrimination,” he said.

Earlier in his reply, Siddaramaiah rejected the Opposition’s claim that the government made the Governor “lie” in his address to the legislature. “The Governor has spoken the truth. Our guarantees have reached people. In fact, people know that the Opposition is lying,” he said.

On Leader of the Opposition R Ashoka’s charge that Congress government was a “broken-down vehicle”, Siddaramaiah said BJP administration from 2019 to 2023 was “a hate-filled, rusted bus that emitted poisonous smoke”.

Siddaramaiah continued his tirade against the union government over resource transfers and release of drought relief. “As Gujarat CM, Modi had said that taxes should not be collected from his state. He said Gujarat was not a beggar. If we say the same thing, how are we secessionists?” he said, adding that Karnataka gets back Rs 13 for every Rs 100 it contributes.