Middle Class Impact
How does the new income tax policy work for individuals earning up to 12 lakh rupees per year?
Under the 2025 Union Budget, Finance Minister Nirmala Sitharaman announced that individuals earning up to 12 lakh rupees per annum will effectively pay zero income tax. While taxpayers technically calculate taxes using the new slabs (0% up to 4 lakhs, 5% from 4-8 lakhs, and 10% from 8-12 lakhs), the government introduced enhanced tax rebates that completely offset these taxes. For example, someone earning 12 lakhs would initially calculate 60,000 rupees in tax liability, but would receive an equivalent rebate when filing tax returns, resulting in zero net tax payment.
Watch clip answer (01:37m)
Think School
00:09 - 01:46
How might the modernization of the tax system affect low-income Americans?
Low-income Americans who rely on prompt tax refunds could face significant challenges due to potential disruptions in the tax system. According to financial experts, while there's bipartisan agreement that modernizing tax returns for greater efficiency is good policy, implementing changes too quickly—especially during tax filing season—risks harming those who depend on timely refunds the most. The situation is further complicated by the fact that while the top 1% of taxpayers are responsible for one quarter of all missing tax revenue, it's often ordinary Americans who suffer from system inefficiencies. This underscores the delicate balance required when reforming tax processes to ensure that vulnerable populations don't experience delays in receiving their much-needed tax returns.
Watch clip answer (00:35m)
ABC News
01:33 - 02:09
How has Donald Trump's presidency affected working Americans?
According to Mitch Landrieu, every economic indicator for working men and women in the United States has worsened since Donald Trump became president. Instead of focusing on the needs of American citizens, Trump has been preoccupied with foreign policy issues, such as apparently conceding to Russia on Ukraine and antagonizing traditional allies including Canada, Mexico, and European nations who have historically stood with America against fascism. Landrieu emphasizes that Trump is not concentrating on the American people and their daily concerns, suggesting that his priorities lie elsewhere. This lack of domestic focus is highlighted as a key failure of the administration, with Landrieu arguing that attention must be redirected to addressing the pressing economic challenges affecting working Americans.
Watch clip answer (00:29m)
MSNBC
07:27 - 07:56
What has happened to China's consumer confidence index and what does it indicate?
China's consumer confidence index has experienced a dramatic decline, dropping from 121.5 in January 2022 to 86.4 in December 2024. This sharp decrease of nearly 35 points over a three-year period signals significantly weakened consumer sentiment throughout the Chinese economy. This plummeting confidence level reflects broader economic concerns in China, particularly related to the struggling real estate sector. The decline indicates consumers are increasingly pessimistic about their financial prospects, which could lead to reduced spending and further economic challenges ahead.
Watch clip answer (00:12m)
WION
01:19 - 01:32
How is the decline in China's property sector affecting the middle class?
China's property sector is facing significant pressure due to high debt levels and insolvency among major developers, resulting in a 12.9% drop in property sales by floor area as of 2024. This decline is directly impacting China's middle class, for whom property income represents a crucial component of household earnings. As real estate underperforms, middle-class homeowners are experiencing asset depreciation, with rental income falling and property values decreasing. This financial strain affects overall household wealth and spending power, contributing to weakened consumer confidence in what has traditionally been a cornerstone of middle-class investment strategy in China.
Watch clip answer (00:30m)WION
00:46 - 01:16
What is happening to China's property income growth and what does it indicate about the real estate sector?
China's property income growth has reached its lowest level in over a decade, growing at just 2.2% in 2024, the slowest pace since 2014. This decline is part of a consistent downward trend that began in 2019, with 2021 being the only exception, highlighting the ongoing slump in the real estate sector. The situation is particularly severe in major cities like Beijing, where per capita net property income has fallen by 0.6% for three consecutive years. This persistent decline in property income growth serves as a clear indicator of the significant challenges facing China's real estate market and reflects broader economic concerns.
Watch clip answer (00:31m)WION
00:00 - 00:32