American woman living in Bengaluru says Indians are overtaxed, urges NRIs to be taxed too

An American woman living in Bengaluru has suggested taxing non-resident Indians to reduce the burden on resident Indians. Taking to the Meta-owned social media platform Threads, influencer Dana Marie proposed the NRIs/Indian diaspora community should be taxed so as to relieve resident Indians of their worryingly high tax burden. She argued, that such a move will also limit India’s brain drain.

“It would completely change India. Not only because of the increased tax revenue, but it might encourage some of India's best talent to work or start businesses here in India instead of abroad,” read her comment.
Her contentious proposal ignited a heated discussion across social media, triggering a wave of divided reactions.


One user explained, "Taxation is determined by residency, not nationality. It’s a fundamental concept—residents contribute taxes because they utilize public services in the country where they live. For context, India received approximately $125 billion in remittances in 2023, accounting for around 3.4% of the nation's nominal GDP."

Another person countered, "Is the Foreign Direct Investment (FDI) we inject into the Indian economy not substantial enough? Why don’t you lead by example and start paying taxes in both countries? Inspire us first."

A third user argued, "NRIs already contribute through capital gains taxes. Why should we be taxed on our foreign salaries as well? That would lead to double taxation. Instead of imposing additional tax burdens, the government should focus on improving infrastructure, governance, and streamlining compliance to encourage investments from NRIs."

Adding to the debate, another commenter stated, "The primary function of direct taxes, like income tax, is to fund public services, infrastructure, and governance in the country where a person resides and benefits from these systems. NRIs, by definition, do not live in India or regularly use these services. Expecting them to pay income tax simply doesn’t add up."

Who Is Dana Marie?

Dana Marie is an American expat living in Bengaluru. She has two daughters.