Hotmail's Sabeer Bhatia reiterates his support for 55% inheritance tax, says it will ‘primarily affect super-wealthy’

Sabeer Bhatia backed his proposed inheritance tax, saying it would only hit the top 2-3% of the super-wealthy who control disproportionate assets, leaving 97-98% unaffected.

Hotmail co-founder Sabeer Bhatia got the Internet talking with his recent controversial suggestion for a 55% inheritance tax, arguing that opportunities should be based on what individuals build.

“If India wants to become a truly competitive nation, it should consider a 55% inheritance tax. Opportunity should come from what you build - not simply from what you inherit,” he said on Saturday.

The post sparked intense social media chatter, with critics debating the proposal's viability and warning it would squeeze middle-class pockets. Reacting to the comments, Bhatia has reiterated his proposal to clarify his stance, saying the massive tax would impact only the super-wealthy.

What were concerns of social media users?

“I simply don't agree. Now, what was built by your father or grandfather should be distributed. Why, it is not the person who has worked hard. The whole family worked hard to earn that status. Wealth distribution is a bizarre suggestion. You may come forward and distribute yours,” a user said.

Another added, “It won’t affect the wealthy. They operate the money through trusts, which are protected from any kind of taxation worldwide or debt. So it will, in the end, affect those small farmers who own agricultural land and have it further divided amongst their sons. Govt helps rich.”

“You trust politicians with your 55% wealth locked in companies, which instantly becomes state-controlled once a major shareholder dies? Scheme to make India communist in one fell swoop,” another user commented.