Pls visit (updated)
http://bic-cherry.blogspot.com/ Progressive property taxes: a forgotten principle or another divisive white horse policy.
The current system of unlimited housing tax concessions is unfair, outdated and unsustainable. At a merely 4% for ANY size of property, it encourages the rich & elitist to speculate/ hoard property at the expense of the majority
- Property taxes need urgent review if we are to remain a 1st world economy.
Here are my basic observations (and their resources).
1) I believe in ¡§Staying Together, Moving Ahead¡¨-
http://www.pap.org.sg/articleview.php?id=589&mode=&cid=25 , I supported that manifesto during the recent election as being human, we have to learn to live together.
2) All SGporeans are united perform some form of NS as parents, males, tax payers etc, so ALL should be entitled to affordable space/ resources to grow their dreams. In terms of residences, food and economic opportunities etc.
3) Increasing the Rich poor divide will only result in social fragmentation, crime, suspicion culminating in demise of SG.
ƒ{ Land is often a source of social discord/ war.
4) It is our elected govt¡¦s responsibility to maintain SG [maybe too: the world at large] in a state of sustainable social development/ economy, and efficient land allocation is paramount.
5) Everything scarce/ ¡¥remotely evil¡¦ in ¡¥squeaky clean¡¦ Singapore must thus be rationed to allow access by all (where appropriate), strategic taxes are a way to achieve this: e.g. : income tax, road tax, GST, ERP,
i) Income tax rates:
http://www.mof.gov.sg/taxation/indiv_income_tax_rates.html ii) Road tax rates: http://www.onemotoring.com.sg/publish/onemotoring/en/lta_e_services/online_enquiries/road_tax_calculator/road_tax_calculation.html
iii) ERP [electronic road pricing]: http://www.lta.gov.sg/motoring_matters/index_motoring_erp.htm
iv) PUB: water conservation tax: http://www.pub.gov.sg/info_center/IcFfWaterTariffs.aspx?l1=4&l2=22&l3=27
v) Tobacco taxes stand at >64%: http://www.hpb.gov.sg/hpb/default.asp?pg_id=1030#a_keystrategies
vi) But yet unconsidered for implementation= land use tarrifs: (not yet implemented for reasons of either bias towards the elite or incompetence):
6) The current system of unlimited housing tax concessions is unfair, outdated and unsustainable. At a merely 4% for ANY size of property, it encourages the rich & elitist to speculate/ hoard property at the expense of the majority SGporean: http://www.iras.gov.sg/ESVPortal/pt/pt_d.1.d.6_what+are+the+claims+available+for+residential+properties.asp. And to further the elitist joy: ¡¥Property Tax haven policy¡¦: another elitist oddity where elites can enjoy S$900K tax exemption: http://forums.hardwarezone.com/showthread.php?t=1512965 (well the existence of estate taxes is another ST forum unanswered: oddity)- Estate duty: Exemption should cover all assets (ST forum: 19.1.07): http://groups.google.com.sg/group/soc.culture.singapore/msg/f258c7cdf9cc2577?hl=en&
7) Land is a limited commodity in SG also- PAP govt says tt it costs $12.81b (or 41.8% of SG2006 budget), not to mention the time, sweat and blood of NS men.
http://www.mof.gov.sg/budget_2006/expenditure_estimates/attachment/Overview_EE2006.pdf , so should the elite continue to be allowed to hoard/ speculate over vast land areas for a song?
Recently: an HDB flat (govt housing) is getting shockingly expensive and property costs in SG are evading the reach of the common man: due to govt oversight?
i) A Marine Cres HDB apt (117sq m) is sold for $495K: http://www.hdb.gov.sg/bb33/ispm051p.nsf/Search ,
http://www.sgforums.com/?action=thread_display&thread_id=236234 ii) The median gross monthly income of the average Singaporean was $2,170 as at June2006: http://www.todayonline.com/articles/170264.asp
iii) SLA does little to control speculative rises and land costs; HDB sidesteps the issue of land costs whilst emphasizing how popular HDB flats are :
ƒ{ Request by citizen: Settle question of HDB subsidy once and for all (ST forum 2.1.07): http://singaporemind.blogspot.com/
ƒ{ Deficient reply by, Dy Dir, Marketing & Projects, HDB- Ms Kee Lay Cheng (ST forum 10.1.07) ¡§Mr Leong ¡K has missed the point. To understand the full extent of public-housing subsidy for new HDB flats, one should be comparing the market value of the flats with the sale prices charged by HDB, rather than look at the input costs of land and building¡K ¡K ¡K ¡K¡¨ http://forums.delphiforums.com/n/mb/message.asp?webtag=sammyboymod&msg=129387.1
9) Proper governance is guided by justice and equality which dictates that progressive taxation forms the backbone of tax policy: http://en.wikipedia.org/wiki/Progressive_tax - . yet it really seems to me that the SG govt ganging up with speculators to profit from land sales: Speculators enjoy low property taxes, gov collects the revenue from expensive land sales. Will HDB eventually breed a population of home debtors? It¡¦s sad when the govt seems so myopic¡K
10) GST is a regressive tax that does no favor to the poor. ¡¥The higher cost of living will hit the poor harder¡¦
http://newpaper.asia1.com.sg/printfriendly/0,4139,122804,00.html and the rich may avoid paying GST on expensive items bought via eBay/ holidays to regional countries etc- methods which the poor have little access.
i) LHL wants SG to take its medicine NOW (in a 1 off adjustment): http://www.channelnewsasia.com/stories/singaporelocalnews/view/254488/1/.html
ii) Has PAP done it¡¦s home work?... or is PAP just finding the administratively simple way out? ¡¥Adm simple¡¦:
http://sg.news.yahoo.com/060403/5/singapore201170.html 11) The gov must honor its manifesto via creating a sustainable platform for the equitable of land distribution in Singapore.
12) Truth is that land and property are both limited resources and its gov duty to ensure its equitable distribution.
i) There is also anticipated increased demand for more housing options in SG both by expatriates, FTs as well as Singaporeans who need basic living space to maintain elderly folk, children and other special needs.
ƒ{ Population is rising: ¡¥planning for a population of 6.5 million¡¦: http://www.channelnewsasia.com/stories/singaporelocalnews/print/257659/1/.html is govt trying to raise the demand for property and then live off rent?
ƒ{ Foreigner get to ¡¥can rent HDB flats at a lower rate¡¦:
http://www.expatsingapore.com/startup/shift.htm , http://www.jtc.gov.sg/products/readybuilt/housing/apt/pages/apartforrent.aspx
ƒ{ Pte property in demand: Foreign purchases of private residences here hit an all-time high of 4,595 last year http://groups.google.com.sg/group/soc.culture.singapore/msg/a29e9bb01e9032f7?&hl=en
13) Social disorder: something tells me that PAP gov has in someway orchestrated this whole immoral ¡¥dependency on PAP programme¡¦ (rooted in the PAP kiasi mentality). To the elite: Land hoarding remains a tax haven and a means of manipulating the poor in society. Is PAP the progenitor of divisive policies?
i) It has been reported that the SG govt¡¦s public assistance schemes are complicated and clumsy:
ƒ{ ¡¥Another $70m for ComCare: Fund helped 90,000 needy S'poreans in first 18 months, ¡K which disbursed $2.7 million through grassroots leaders¡K. 5,500 grassroots leaders were also trained to provide interim assistance to families in financial difficulty¡¦ http://www.todayonline.com/articles/170947print.asp yes: SGporeans are so dependent on PAP handouts¡K but what about making them less debt laden in the first place via proper regulation of land/ resource allocation in SG in the first place?
ii) MP father and daugther in rift with common men: ¡§¡K please, get out of my elite uncaring face.¡¨ (19 Oct, 2006) saga: (Adventures of an Elite Girl) http://intelligentsingaporean.wordpress.com/wee-shu-min/ ,
iii) NKF saga , good documentry: http://www.geraldtan.com/medaffairs/misc-nkf.html , Wikipedia:
http://en.wikipedia.org/wiki/National_Kidney_Foundation_Singapore_scandal#Mrs_Goh.27s_remarks , SG govt¡¦s reply: http://app.mof.gov.sg/cutwaste/suggestionview.asp?id=25856
iv) Peanuts: http://en.wikipedia.org/wiki/Tan_Choo_Leng ,
v) Middle class wage stagnation could lead to social instability (11.1.07) http://www.channelnewsasia.com/stories/singaporelocalnews/view/251939/1/.html
vi) Why are so many citizens worse off than they were 10 years ago? (29.1.07)
http://www.msnbc.msn.com/id/16725528/site/newsweek/ vii) 30.7.05: speech: National Financial Literacy Survey: ¡K 86% of Singaporeans save¡K Less than one third (32%) have cash savings of three times or more of their monthly salary ¡K In 2004, only about 40% of active CPF members were able to meet the Minimum Sum:
http://www.moe.gov.sg/speeches/2005/sp20050730b.htm : have these findings been followed with a an in-depth investigation and follow-up review conducted given these dismal findings? What is the state of debt amongst the people?
viii) Blog on miserable life of an educated SG¡¦porean (that drew ire by MP¡¦s daughter in ¡¥13ii¡¦): http://derekwee.blogspot.com/
ix) SG an Evil society: Domestic Workers Suffer Grave Abuses: http://hrw.org/english/docs/2005/12/07/singap12125.htm
x) Elections in SG are unfair: Downsize super GRCs (23Dec2005): http://newpaper.asia1.com.sg/printfriendly/0,4139,99258,00.html?
xi) Singaporeans can write to CPF Board to appeal for higher Progress Package payout (3.4.06) : Mr Mah explained that while this may not be the best way of measuring their wealth, it is administratively simple: http://sg.news.yahoo.com/060403/5/singapore201170.html
xii) 67,000 Singaporeans fail to sign up for Progress Package payouts: http://www.channelnewsasia.com/stories/singaporelocalnews/view/254970/1/.html
xiii) Singapore's birth trend outlook remains dismal (7.2.07): http://www.channelnewsasia.com/stories/singaporelocalnews/view/257208/1/.html - bolder changes in family policies are needed to help Singapore replace its rapidly ageing and dwindling population.
xiv) Singaporeans need assurance over growing population: sociologist (9.2.07) Prof: it's also important that as Singapore attracts more foreigners here, it should also take measures to retain its citizens. http://www.channelnewsasia.com/stories/singaporelocalnews/view/257677/1/.html
xv) Help middle income workers by relaxing Workfare criteria: unions (9.2.07): ¡§in the past, even when the income tax was lowered, they had lower CPF as well. That, somehow, did not equal out to more benefits ¡K¡¨:
http://www.channelnewsasia.com/stories/singaporelocalnews/view/257618/1/.html xvi) Social Development Sector comprises six Ministries ¡K accounts for 41.8% govt expenditure in FY06.- http://www.mof.gov.sg/budget_2006/expenditure_overview/social_dev.html
xvii) This is a system based on government taking everything away from the people: http://www.sgforums.com/?action=post_display&post_id=5963404
xviii) PM Lee: [during recent house visits] we saw old folks living by themselves¡K We didn't expect five years ago: http://www.channelnewsasia.com/stories/singaporelocalnews/view/257925/1/.html
xix) SM call to wealthy : Give 0.5% of annual pay to needy: http://singaporecommentary.blogspot.com/
xx) PAP is mounting a quiet counter-insurgency against its online critics¡K has members going into Internet forums and blogs to rebut anti-establishment views and putting up postings anonymously. (ST3.2.07) http://singaporeelection.blogspot.com/2007/02/pap-declares-war-on-netizen-moments.html
xxi) PAP insists it¡¦s a Competent and Honest Government (1994) deserving high salaries/ pensions:
http://mindbloggingstuff.blogspot.com/2006/04/does-singapore-have-clean-government.html ; http://yawshinleong.blogspot.com/2006/11/ministerial-salaries-revisited.html
xxii) PAP MPs ask citizens to stop whining about their problems (11.11.06): http://sg.news.yahoo.com/061111/5/singapore240522.html
14) ¡§Staying Together, Moving Ahead¡¨- the ease of implementation and the benefits gained from progressive, ¡¥individualized¡¦ land/ property taxes are as follows:
i) Benefits:
ƒ{ Greater tax contribution by those who can afford, and choose to live luxuriously in our safe and cosmopolitan city (in a beautiful land protected and maintained by its citizens):
ƒ{ Greater emphasis on family as prop tax calculations would benefit ¡¥larger gps under same roof¡¦: i.e. families.
ƒ{ Better population census as result of people registering their true addresses.
ƒ{ More equitable distribution of ¡¥progress packages¡¦ and better targeted social support framework through accurate census information, with consideration that not all private prop dwellers are ¡¥rich¡¦.
ƒ{ Improved govt image viz improved government transparency and maturity of govt administration.
ii) Ease of implementation:
ƒ{ Each SGporean/ PR/ legal FT etc is allocated an individual property tax allowance/ scale (adapted from income tax scales:
http://www.mof.gov.sg/taxation/indiv_income_tax_rates.html).
All amounts refer to per pax tax burden wrt annual value of property based on 2007 rates (I favor < Y2K rates though):
[amounts < $2K]: no tax
[amounts < $3k]: On the first 2K and next <$1K= [$0 + excess value x 3.5%]
[amounts < $4k]: On the first 3K and next <$1K = [$35 + excess value x 5.5%]
[amounts < $8k]: On the first 4K and next <$4K = [$90 + excess value x 8.5%]
[amounts < $16k]: On the first 8K and next <$8K = [$430 + excess value x 14.0%]
[amounts < $32k]: On the first 16K and next <$16K = [$1550 + excess value x 17.0%]
[amounts > $32k]: On the first 32K and next whatever amt = [$4270 + excess value x 20.0%]
and so forth¡K (see income tax rate 2007 for the idea: http://www.mof.gov.sg/taxation/indiv_income_tax_rates.html)
ƒ{ A family of 10 living in a large property of annual value $80K need not be alarmed about property taxes as each person¡¦s allocation will be accumulated: thus the said property of 10 legal inhabitants will yield: $4300 in tax [i.e.: 10x the $<8k category], however if a rich tycoon decides to stay alone in such a property (inefficient land use): then the tax chargeable would be under the >$32k category at $4270 + 48,000 x 20%= $13,870.
ƒ{ (currently the prop tax is $80,000 x 4%= $3200- for this rather large property)
ƒ{ Computerized national registry records / elections dept records can easily yield the no. of ¡¥legal¡¦ inhabitants residing in such quarters. This calc is no more complicated then that for the progress pkg/ income taxes and far more equitable.
ƒ{ A similar formula can be used for rental/ ¡¥non-owner occupied¡¦ properties.
15) UN World Summit for Social Development and beyond: achieving social development for all in a globalizing world (Geneva, 26-30 June 2000) SG gov: ¡§Economic development is undoubtedly necessary to ensure social stability. The thrust of our social development policy is to deploy resources to pre-empt social problems and actively shape the development of our society instead of dealing with them downstream.¡¨- http://www.un.org/socialsummit/speeches/286sin.htm
16) SG gov has no excuse not to do a good job implementing my suggestion:
i) They promise a first class living environment as reason to raise GST, http://www.singaporebudget.gov.sg/budget_2007/gst.html#Q1 that being the case then there is urgent need for equitable land use/ distribution in SG.
ii) They have enough manpower to check ALL commercial weighing scales in SG: between 04 till current and announce its completion: http://www.channelnewsasia.com/stories/singaporelocalnews/view/257636/1/.html
iii) SG is an info comm. Hub, no reason why it cannot set an example in govt administration for other countries to follow in the accurate assessment on property taxes: http://www.i2r.a-star.edu.sg
iv) No one ever said tt building a first class living environment would be ¡¥administratively simple¡¦ http://sg.news.yahoo.com/060403/5/singapore201170.html , any how, PAP ministers are already being paid more then adequately to deliver (¡¥befitting of their abilities¡¦)¡K
http://uselesstree.typepad.com/useless_tree/2006/05/pap_ministers_v.html , PAP pension= pension of up to 80% of their last drawn salary +$800,000. http://groups.google.com.sg/group/soc.culture.singapore/msg/7422c425516debe8?dmode=source&hl=en
v) SG gov under PAP: ¡§integrity, service, excellence¡¨: http://www.gov.sg/
vi) Progressive subsidies, regressive taxes: what¡¦s the point?:
http://www.channelnewsasia.com/stories/singaporelocalnews/view/257428/1/.html 17) Conclusion: Where there is demand in a country for a scare resource: the govt is responsible for equality in its distribution. Taxes and usage charges are a common way of controlling land use resources tt the SG govt has failed to implement correctly. More so is the current urgency for such implementation now that the govt intends to raise taxes for govt expenditure. Implementing regressive taxes (GST) cannot be the only solution until and unless progressive taxes (ie on land use in said case) are correctly implemented. The current govt proposal is probably negligent in this instance.
i) What will the result be? :
ƒ{ For the speech on 15.2.07: http://www.singaporebudget.gov.sg/budget_2007/index.html
ƒ{ Citizen commentary (maybe): http://www.singaporeangle.com/
1
References:
ƒ{ Singapore is a sick country: ¡K has the fifth highest incidence of kidney failure in the world with about 20.1% Singaporeans suffering from hypertension and 8.2% from diabetes. Cancer is the No. 1 killer in Singapore. Every year, over 8000 cases of cancer are recorded here. http://www.nkfs.org/pc_health_screening.php
ƒ{ WHITE HORSE "Prior to year 2000, the term 'white horse' was used to identify sons of influential persons to ensure such enlistees were not given preferential treatment." http://www.bigomagazine.com/fooled/whitehorse.html , http://www.newsintercom.org/index.php?itemid=274
ƒ{ PROPERTY TAX ACT: (CHAPTER 254)-
http://statutes.agc.gov.sg/non_version/cgi-bin/cgi_retrieve.pl?actno=REVED-254 Will appreciate feedback if any info is incorrect. Tkx. Will make corrections where due ->@ http://bic-cherry.blogspot.com/ or
[email protected] , Anonymous PAP counter-insurgency team response welcome ¡K just no hacking pls: ( http://singaporeelection.blogspot.com/2007/02/pap-declares-war-on-netizen-moments.html )