The Congress has inherited a problem. And it’s the problem of gaffes from Indian Overseas Congress head vai de bet:Sam Pitroda, who stoked a controversy ear��ly Wednesday morning when he said that the United States (US) has a concept of inheritance tax, which means 55% of the wealth is handed over to the𒁏 government and not the children.

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The morning began badly for the Congress. It was quick to distance itself from Pitroda’s comment and say that his was not the official view. Sources say the Congress called Pitroda to ask him to backtrack. He did, but shifted the blame onto the media.Why the damage despite the clarifications?

THE TIMING & START-UPS

For a number of reasons. One, the timing. This comment comes 72 hours after PM Narendra Modi attacked the Congress for suggesting that there should be reassessment of wealth management and distribution. As per the Bharatiya Janata Party (BJP), it would be to the minorities and also means that people will be denied their money and hard-earned wealth.The pitch of the Modi government has been entrepreneurship and that everyone must be encouraged to earn well and take care of future generations. It has encouraged start-ups and they could be demoralised if Pitroda’s idea gains traction.In fact, many in the Congress, like Udit Raj, have supported Pitroda.

THE MIDDLE CLASS

The bigger worry is the middle class. Around 31% of India comes under the category. This number is expected to go up to 41% by 2031. It is clear and understandable why this class is most important for parties like the BJP and Congress. They are influential, they are growing and their vote matters. Hence, the BJP and its ministers like FM Nirmala Sitharaman raised this apprehension that the Congress wants to tax more, even after death. And that the middle class could be hit.The Congress is clearly worried. It wouldn’t want an impression that it wants to tax more.

HISTORY

History is not favourable. While the Congress’s Jairam Ramesh hit back to say that the party plans no inheritance tax and that instead the BJP wanted to bring it, the fact is that in 2011, P Chidambaram, as the FM, had mulled luxury and inheritance tax. Ironically, the estate tax, as it was called, was brought to India in 1953, but was abolished by FM VP Singh in 1985, when Rajiv Gandhi was the PM.

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Rahul Gandhi has been criticised by his detractors for being smitten by the Left, NGO culture and communism. This proposal and apprehension stoked by the BJP has made things worse for him and the Congress, which wants to woo the middle class. It has made many in the party, too, see red, even as they, in any case, are uncomfortable with repeated attacks on corporates by Rahul Gandhi and his team.