Home > Speaker's Corner

60% of Singaporeans do not pay income tax

Wega007
23 Nov 06, 04:26

Originally posted by siaokao:
U r investing on gov's behalf. Can u cash out the $$?
these days cannot use CPF to buy HDB liao?
if so, really tax...
tax is gone cannot even use it to buy HDB, cannot see it even for X yrs old.

I guess if they allow cashing out of CPF, will be like USA system tax U on it..
after retirement age no tax.
Atobe
23 Nov 06, 14:15

Originally posted by oxford mushroom:

Businesses are profit-motivated and individuals are self-centred. That is a fact of life. The tax policy in Scandinavian countries like Finland penalizes the young workers to benefit the old and unemployed. As a result, tax payers like this Finnish guy would rather bring his skills to Singapore, where he is better off financially.

As stated in a review by KPMG, ".. from our past 14 yearsÂ’ tracking experience it appears to be economically and socially desirable for countries to strive for lower corporate income taxes. Corporations are sensitive to income tax rates, and the enhanced mobility of capital and labor all over the world increases their ability to transfer functions from a high tax regime to a low-tax country."

(http://www.kpmg.com/Services/Tax/IntCorp/CTR/)
You are spot on about individuals being "self-centered" - as you are such an expert with your examplary attitude towards the less fortunate; and topping it up with your conceitedness.

The high tax policy of Scandinavian countries carries with it the vast social support network that is the envy of the industrial world, and the Scandinavian Countries can boast of the world's highest health care standard, education, social welfare, and industrial safety - and yet despite this 'supposedly' heavy social burden, it is leading the Scandinavian Countries forward in its industrial strength and progress.

In every society, there are always quitters, this single Finn working in Singapore is probably a "finnished product", can he be the "BEST singular example" that represent failure in the Scandinavian system ?

Hardly, there are Finns and other Scandinavians, who prefer the climate and work in a low cost environment, and have intentionally asked for posting here while drawing the same standard "minimum Scandinavian wages", PLUS overseas Hardship Allowances, PLUS Expatriate Family Support, PLUS Housing and Car Allowances.

With all these perks, which Scandinavian will not ask to work outside of Scandinavia ?

With such high remunerations to live in Asia, the Scandinavian can afford to maintain its high standard of living, PLUS employing "house-help" - something that they can hardly enjoy when living in Scandinavia.

Is tax the only reason for running away from Scandinavia ?

If this is so, and since almost every Scandinavian are well paid, they all should be hollowing out their cities, towns and villages, and migrate en-masse to overseas destinations that will surely welcome their talent and skills ?

Yet, Scandinavians form a minority of migrants in the World, and with Asian economic migrants also seeking to get into these Scandinavian countries.

Taxes will certainly hurt the Corporate Capital, as there are no other benefit in return for the high taxes paid except for political and environmental safety.

While high tax rates paid by individuals in the Scandinavian Countries will see the Government providing high standards of Medical and Health Care, Social Welfare Support, Education, Industrial and Environmental Safety.

It does not take too much of a genious to see that these are two different sets of scenarios that can hardly be comparable.

Still how can the Singapore Government account for the fact that they have been NEGLIGENT in allowing 60% of Singaporeans to escape from paying Income Taxes ?

Or have they been dishonest about the actual statistics concerning the unemployed, the under-employed, the semi-employed ?
oxford mushroom
23 Nov 06, 15:47

Originally posted by Atobe:

Still how can the Singapore Government account for the fact that they have been [b]NEGLIGENT in allowing 60% of Singaporeans to escape from paying Income Taxes ?
[/b]
How dense can you be? The reason why so many do not pay income tax is because they fall below the lowest tax bracket after the generous tax reliefs to benefit low income earners.

Perhaps you think that the minimum qualifying income is too high and the tax reliefs have been too generous? I suppose you would rather make more low income earners pay income tax.
Atobe
23 Nov 06, 21:47

Originally posted by oxford mushroom:
How dense can you be? The reason why so many do not pay income tax is because they fall below the lowest tax bracket after the generous tax reliefs to benefit low income earners.

Perhaps you think that the minimum qualifying income is too high and the tax reliefs have been too generous? I suppose you would rather make more low income earners pay income tax.
So the PhD Mushroom from Oxford finally is enticed to respond to his "Absolute Rubbish" .

Is this the best you can manage with such a meek response with an ironical appreciation of density despite your ability at hollow statements ?

Since when has the Singapore Government offered tax relief that has been considered simply generous - even if you wish to be superfluous by claiming it to be "too generous" ?

If we can beleive your reason that "so many do not pay income tax is because they fall below the lowest tax bracket" - even before the tax reliefs - it certainly confirmed the fact that this Singapore Government has been misleading us with all the glamourous industrialization schemes for a better life - even comparable to Swiss Quality - over the last 45 years, while Singaporeans are being made monkeys with "Real Peanuts Wages".

With all the Scholars engaged, and still they allow "a majority of Singaporeans to enjoy massive tax relief" - with 60% of Singaporeans not in the Tax Net - and affecting the National Budget, the Governent should have sacked these Scholars for giving Singaporeans a "FREE LUNCH" - which is an anti-thesis to the Political Philosophy of this Government.

Should we be surprised if these Scholars are PhD holders, when we have a resident one who are similarly brilliant ?

Lightning is similarly brilliant but only flash momentarily and followed by a loud clap of thunder that make a short shocking impact that serves no purpose.
the Bear
23 Nov 06, 21:49

in my family, 66% do not pay income tax... my folks are retired..
maurizio13
24 Nov 06, 00:55

Originally posted by the Bear:
in my family, 66% do not pay income tax... my folks are retired..
It's alright now, they fixed that problem of your parents not paying income tax, now they have to contend with 7% GST next year.

Hehehe.
bozo43
24 Nov 06, 01:26

Originally posted by oxford mushroom:
It's simple English. 60% of Singaporeans means 6 out of 10 Singaporeans (or that's how the writer of the article phrased it...)...that includes students, the elderly, prisoners and working Singaporeans whose incomes (after legal deductions and tax rebates) fall below the threshold for income tax payment.

As I said, what is worse is that with an increasingly aging population, the elderly who do not work and pay income tax also tend to consume more resources, thus exacerbating the crunch on the tax payers.
that's why they need indirect tax lor, also dont forget corporates pay taxes too. what about the cheap loan you give to sg govt they call the cpf?
highway69
24 Nov 06, 10:29

Originally posted by oxford mushroom:
Businesses are profit-motivated and individuals are self-centred. That is a fact of life. The tax policy in Scandinavian countries like Finland penalizes the young workers to benefit the old and unemployed. As a result, tax payers like this Finnish guy would rather bring his skills to Singapore, where he is better off financially.

As stated in a review by KPMG, ".. from our past 14 yearsÂ’ tracking experience it appears to be economically and socially desirable for countries to strive for lower corporate income taxes. Corporations are sensitive to income tax rates, and the enhanced mobility of capital and labor all over the world increases their ability to transfer functions from a high tax regime to a low-tax country."

(http://www.kpmg.com/Services/Tax/IntCorp/CTR/)
Businesses are profit-motivated but does that mean at any social,moral or even inhuman cost?? Drug dealing is also business, does that mean is ok?
Humans are by nature self-centred but what purpose is education and campaigns to correct this, all gone down the drain? Ethics is the knowledge of what is right or wrong. Young workers being penalised to pay high taxes to care for the old is your own perception.Where were these 'young' workers when their seniors were toiling the ground? Are we to forsake the old when we can walk on our own?