Piketty suggests policy reforms to adopt progressive taxation to tax the capital for about 80%, which actually is hard to be done in real world scenario. The world has not yet succeeded in adopting the policy to tax carbon emission, let alone taxing wealth with such a higher per cent age. The critics also argue that wealth tax would reduce incentives for the investors to invest and innovate. Moreover, capital may rush to the tax heavens such as Switzerland and other developed countries.
The work of Thomas Piketty is very helpful in measuring income inequality and wealth inequality, which can draw attention of the policy makers and legislators to this very important issue, which is affecting even the developed world. The Policy makers can at least think seriously how to tackle the issue, how to make growth greater than the rate of return on capital, how to reform tax system and to invest in areas which can help in poverty eradication, improving indicators of wellbeing, reducing inequality and simultaneously having efficiency. In this regard, technology and innovations can also be helpful to shift the GDP growth on greater side. The gap between growth and return on capital is to be shortened to address the issue of equity to the maximum..
Abdullah Khan, Quetta -Pakistan