Remark on wealth redistribution has nothing to do with policy of Congress: Sam Pitroda

Indian Overseas Congress chairman Sam Pitroda

Defending his remarks made in relation to wealth redistribution, Indian Overseas Congress chairman Sam Pitroda said his words were 'twisted' by media and he mentioned inheritance tax only as an example.

"I mentioned US inheritance tax in the US only as an example in my normal conversation on TV. Can I not mention facts ? I said these are the kind of issues people will have to discuss and debate. This has nothing to do with policy of any party including congress," he said on X platform (formerly Twitter).

Pitroda said efforts were being made to divert attention from PM Modi's 'lies' about Congress manifesto.

"It is unfortunate that what I said as an individual on inheritance tax in the US is twisted by media to divert attention from what lies PM is spreading about Congress manifesto. PM’s comments Mangal Sutra & gold snatching is simply unreal."

Union finance minister Nirmala Sitharaman dived into the issue and accused the grand old party of tax terrorism.

"So, the @INCIndia plan is: While living—Tax. On death —Tax (Inheritance). Aims to hit the middle and aspirational classes. Their savings or small holdings shall not go their children. Dr MMS’ “Organised loot and legalised plunder” will be seen in action. Congress’ #TaxTerrorism," the finance minister said.

Interestingly, many on social media pointed out that there is no federal inheritance tax in the US. It is only levied by six states- Kentucky, Iowa, Maryland, New Jersey, Nebraska and Pennsylvania. However, the federal government levies an estate tax, which generally ranges from 18 to 40 percent.

Congress went into damage control mode as senior Congress leader Jairam Ramesh described as personal views the remark by Indian Overseas Congress chairman Sam Pitroda that India should have inheritance tax similar to that in the US.

The secretary-in-charge of Congress was forced to step in as the BJP has accused the party of planning wealth redistribution, as campaigning picks up ahead of the second phase of voting for the Lok Sabha on April 26.

“Sam Pitroda has been a mentor, friend, philosopher, and guide to many across the world, including me. He has made numerous, enduring contributions to India's developments. He is President of the Indian Overseas Congress. Mr Pitroda expresses his opinions freely on issues he feels strongly about. Surely, in a democracy an individual is at liberty to discuss, express, and debate his personal views.

Sam Pitroda has been a mentor, friend, philosopher, and guide to many across the world, including me. He has made numerous, enduring contributions to India's developments. He is President of the Indian Overseas Congress.

Mr Pitroda expresses his opinions freely on issues he…

— Jairam Ramesh (@Jairam_Ramesh) April 24, 2024

Distancing the party from Pitroda’s remarks, Ramesh said efforts were being made to divert attention away from Prime Minister Narendra Modi’s "mischievous" election campaign.

“This does not mean that Mr. Pitroda's views always reflect the position of the Indian National Congress. Many times they do not. Sensationalising his comments now and tearing them out of context are deliberate and desperate attempts at diverting attention away from Mr. Narenda Modi's malicious and mischievous election campaign; that is anchored only in lies and more lies,” Ramesh tweeeted.

Backing the idea of wealth re-distribution, Pitroda had earlier said India should benefit from the wealth of the super rich. "...In America, there is an inheritance tax. If one has $100 million worth of wealth and when he dies he can only transfer probably 45 percent to his children, 55 percent is grabbed by the government. That's an interesting law. It says you in your generation, made wealth and you are leaving now, you must leave your wealth for the public, not all of it, half of it, which to me sounds fair,” Pitroda said.

#WATCH | Chicago, US: Chairman of Indian Overseas Congress, Sam Pitroda says, "...In America, there is an inheritance tax. If one has $100 million worth of wealth and when he dies he can only transfer probably 45% to his children, 55% is grabbed by the government. That's an… pic.twitter.com/DTJrseebFk

— ANI (@ANI) April 24, 2024

India could have similar laws, which would be in the interest of the people, Pitroda said.

“In India, you don't have that. If somebody is worth 10 billion and he dies, his children get 10 billion and the public gets nothing...So these are the kind of issues people will have to debate and discuss. I don't know what the conclusion would be at the end of the day but when we talk about redistributing wealth, we are talking about new policies and new programs that are in the interest of the people and not in the interest of super-rich only."

Further, explaining the idea of wealth redistribution, Pitroda said the rich do not pay enough money to their domestic helps and peons, but spend lavishly on vacations.

“If we come up with a minimum wage in the country saying you must pay so much money to the poor, that’s the distribution of wealth. Today, rich people don’t pay their peons, servants, and home help enough but they spend that money on vacation in Dubai and London…When you talk about the distribution of wealth, it is not that you sit on a chair and say I have this much money and I’ll be distributing it to everybody,” Pitroda said.

The remarks come as the BJP and Modi have been targetting the Congress, saying its manifesto talks of redistributing wealth, something that would hurt ordinary citizens.

What Congress had said

The Congress' manifesto talks about addressing rising inequality in the country.

"We will address the growing inequality of wealth and income through suitable changes in policies ... Congress will conduct a nation-wide socio-economic and caste census to enumerate the castes and sub-castes and their socio-economic conditions. Based on the data, we will strengthen the agenda for affirmative action," the party’s manifesto says.

Soon after the controversy erupted over Pitroda’s remarks, senior party leader and former Congress president Rahul Gandhi said the BJP government at the Centre wrote off over Rs 16 lakh crore, which could have been used to provide benefits to the poor and women.

नरेंद्र मोदी ने अपने अरबपति मित्रों का 1,60,00,00,00,00,000 मतलब 16 लाख करोड़ रुपया कर्ज़ा माफ किया है!

इतने पैसों से:

- 16 करोड़ युवाओं को 1 लाख रू साल की नौकरी मिल सकती थी

- 16 करोड़ महिलाओं को 1 लाख रू साल देकर उनके परिवारों की जिंदगी बदली जा सकती थी

- 10 करोड़ किसान…

— Rahul Gandhi (@RahulGandhi) April 24, 2024

Shashi Tharoor, Congress MP and candidate from Thiruvananthapuram in the Lok Sabha elections, said what Pitroda suggested is not in the party manifesto and the attack from BJP is 'preposterous'.

"...What Sam Pitoda has said is not in the manifesto...We are a democratic party, everyone has a right to their personal opinions...But once the document is approved by the Working Committee, that is all the party is standing behind. So, the party is saying - this is our document, read it. Nowhere does it talk about wealth redistribution."

Tharoor clarified that the party manifesto does not talk about taking anybody's gold and snatching the mangalsutra of women.

"This is such preposterous attacks that we are seeing from the BJP. It is a measure of their desperation. They know that they are losing this election and they will fling any mud that they can...Sam Pitroda is not in the manifesto committee. This is not part of our agenda...It is his personal opinion. You can't take anyone's personal opinion and say that it is going to be Congress party's intention," the MP told news agency ANI.