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Introduce capital gains tax so the wealthy can help society

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  • Clivebenss's Avatar
    20,231 posts since Feb '10
    • Mar 2, 2012 - ST Forum

      Introduce capital gains tax so the wealthy can help fund social spending

      MP DENISE Phua (Moulmein-Kallang GRC) proposed an increase in income tax rate for top earners to help pay for increased social spending ('Tax rich more to fund social spending'; Wednesday).

      In my view, we should focus on another aspect of tax policy: the absence of a tax on investment returns.

      We should take a leaf from multi- billionaire American investor Warren Buffett's book. He advocated taxing his wealthy peers, arguing that the rich pay less tax because their capital gains are taxed at only 15 per cent in contrast with an income tax rate of 30 per cent.

      According to him, such a tax policy has resulted in the absurd reality of someone so wealthy like him enjoying a lower tax rate than his office staff.

      The general trend is that the wealthy derive a far greater proportion of their earnings through investments, as compared to the less well-off.

      This is for the simple reason that they have more savings and hence the capital to invest.

      In Singapore, capital gains as a result of personal investments, such as stocks and property, are not taxable.

      Introducing a capital gains tax will ensure that everyone pays a fair tax on all his income, regardless of the source of the income.

      This will provide a substantial amount of Budget revenue to fund the social and productivity initiatives.

      Xing Yun

      Edited by Clivebenss 02 Mar `12, 6:55PM
    • will they make a clause that ministers are not subjected to such gain tax? If that the case, it might work.

      icon_lol.gif

  • Itedino's Avatar
    1,512 posts since Jun '08
    • Good idea. Tax those who posses assets are over 5 millions and above.

      i think should be enough. Enough to help poor who earn 1.5-1.8k like me. Most importantly able to help elderly.

  • Bikeforceful's Avatar
    625 posts since Dec '11
    • Very unlikely for the government to introduce capital gains tax. Imagine the capital gains tax on all those 99 year lease bungalows on Sentosa Cove… how many foriegners or even local investors would invest , if so? They cannot let capital gains tax be the death knell for the lucrative hot property market! Don’t expect themarket to fall . even for HDB flats at most they maintain their current high prices, for the time being.

      Edited by Bikeforceful 03 Mar `12, 9:11AM
  • Itedino's Avatar
    1,512 posts since Jun '08
    • i tell u. Many people very greedy keep on wanted to buy private property. MAKE IT AS SKY HIGH AS POSSIBLE.

      Bungalow - 10 m

      Terrace - 8m

      Semi de - 6m

      - Condo - 5m

      I repeat only the rich and foreigners can live there. Security guard increase 2000 maintaine one month.

  • Clivebenss's Avatar
    20,231 posts since Feb '10
  • Bikeforceful's Avatar
    625 posts since Dec '11
    • Absolutely ridiculous to introduce capital gains tax. Property transactions and speculation is in itself a thriving business! Look at the amount of stamp duties collected! Why introduce capital gains tax to kill the golden goose (property speculation and transactions)? Imagine your great grandfather left you a huge bungalow 25,000sf feet which he bought in 1940’s for a pittance of 20,000/- And now it is worth 20million at least! How much capital gains tax must you pay?

      Edited by Bikeforceful 04 Mar `12, 10:00AM
  • Clivebenss's Avatar
    20,231 posts since Feb '10
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