How Government policies impact FIRE

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Roland Regan, 40th president of USA once said, "Government Cant solve problems, it subsidizes them". And those subsidies are from our pocket.

Taxes:
Tax is non involuntary contribution of an individual to an government organisation because he is above average in making money than his peers, so that government can eat most of it via scams and then left over will go to the development of the country.

Income tax is the biggest expense for a normal household. Sometimes people get into debt only to pay for the income tax. This shows how important tax planning is for an individual.

Warren buffet once gave best way to teach kids about taxation. Give kid an Ice cream and eat 30% of it. This will make kid understand about the biggest burden once he starts earning.

There are many taxes in India which are directly taxed and indirectly taxed.
Income tax, GST, Education cess, fuel surcharges are a few to be named.

Income tax is direct form of tax where the individual has to pay part of his earned income to government for his efforts which made him more money than other people. People think government acts like robinhood. Taking money from the have's and giving it to havenot's. Well, part of it is true which is taking money from the have's.

There are different slabs for different income levels. These will change yearly when the Finance Minister proposes budget for the country.

GST: Goods and Services Tax are the indirect taxes that are applied on the goods or the services that are provided in the country. There is independent council for gst to set the percentage of gst that is applicable on the goods or services.

Government retirement schemes for building wealth:
EPFO, NPS, PPF, PMVVY are the schemes that an individual can use to finance his retirement or use it after retirement. The interest rates are controlled by Government of India and are sovereign backed.

EPFO,NPS , PPF & PMVVY are explained in detail here

RBI's monetary policy:
Reserve Bank of India is banker for the government of India and also it is responsible to oversee the financial stability of rupee and banking system in the country. RBI will meet once in a quarter to set the interest rates for whole banking system.

This meet has biggest impact as it is responsible for the banks to lend us money or the rates at which we get return for fixed deposits and also the bond market. Inflation and deflation is achieved by setting up these interest rates

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