Large black economies can breed social resentment, since the art of dodging taxes is often most refined among the rich. In India, the government manages to collect income taxes equal to only 3 percent of GDP, and the size of the black economy is estimated to account for around 30 percent of GDP. This is one reason India suffers from chronic government deficits. The culture of avoiding taxes starts at the top: In a vast population with more than 250,000 millionaires, only 42,000 individuals report incomes of $150,000 or more, as economist Tushar Poddar has pointed out. He argues that tax
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