Embarrassment of Riches, for those Who are Already Rich..
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Single elderly Consolation
February 17, 2007
THIS Budget is potentially an embarrassment of riches for those who are already rich.
If you have property, own a car, employ a couple of maids, you will pay less in tax and levies to the Government.
You will also get more in your pocket - in increased CPF from your boss and GST credits from the Government.
With such wide lifestyle subsidies, this Budget '07 could be seen as a signal that the Government is paying more attention to the middle-class.
The middle class Singaporean is a mysterious creature who eludes official definition.
According to Department of Statistics, the 50th percentile household income per capita is $1,140. If there were say, four people in the household, its monthly combined income would be around $5,000.
So a household which has $4,000 to 5,000 in monthly income would fall within this class.
The Lim family is typical of this household. Mrs Irene Lim, 38, the manager of an enrichment centre, her husband, a site agent, and their three children live in a five-room flat in Bukit Panjang.
Their combined take-home income each month is in the range of $5,000 to $10,000.
Giving subsidies to the middle-class is, by and large, a good thing.
After all, many in the middle-class are also in the sandwich generation that has to take care of high medical bills for their elderly parents, as well as school going needs of their children.
But here's the rub - there is no difference in the Government's largesse to the middle class and the super rich.
So, someone who earns $1 million a year will get $100 in GST credits - just like the middle class Singaporean. If they go to a polyclinic, their medical fees will be GST free.
The reply from the Government about its subsidies to the rich is there is no real means test, and it is using proxies such as housing types as a gauge. But isn't it possible to distinguish between income levels?
If the Government chooses to give monies through CPF accounts, surely the account of a million-dollar-income individual is different from a middle-class earner?
If it is just a matter of giving something to everyone so there is a collective cheer all round, then I would say that the Government has too much in its bank account.
But if, unwittingly, the super rich stand to gain from what is meant for the middle class, MPs should lobby harder to make sure that more money goes to those who need it most. -
Originally posted by ShutterBug:
Wah lao sure or not? Singaporeans so pitiful meh? "four people monthly combined income around $5,000."
[b]According to Department of Statistics, the 50th percentile household income per capita is $1,140. If there were say, four people in the household, its monthly combined income would be around $5,000.
February 17, 2007 [/b]
Eat grass, like that. People still vote them when they make HDB, medical and transport so ex? Something very not right leh. -
I
READ with interest and cheers the report, 'Budget 2007: Poised for the future' (ST, Feb 2007).
Some research shows that 30% of the SME are not paying corporate taxes. This means that these businesses are not showing profits therefore not paying taxes.
It is laudable that the Budget pays a lot of attention to boost the wages of the lower-income group.
However, it is a little disappointing for fledgling small-time businessmen, who may feel there are no incentives to encourage those who have struck out on their own.
Not only are they not entitled to any Workfare benefits, but there is also nothing in the Budget to help grow their businesses.
Some of them face teething problems as they are still new in the market.
The Budget should encourage the entrepreneurial spirit of such businessmen and the new entrants. I know of a travel agency owner who struggled to build his new business. After about two years of hard work, it grew and he now employs about 100 staff members, including several managers.
Another shining example is Mr Sim Wong Hoo, chairman of computer conglomerate Creative Technology, who started out small. He has made Singaporeans proud.
Small-time businessmen need to feel that the Government is ready to provide all-out support for them.
More importantly, more people should be encouraged to have the entrepreneurial spirit to build up small and medium-size home-grown enterprises.
Simon Ng Yap Peng
Therefore the new tax cuts are not applicable to these SMEs. However they are affected by the following increases
1. GST increase to 7%
2. Employer's CPF contribution to 14.5%
3. The increase in foreign levy to $150 -
hahahaha if they don't do things to kill them off one by one it is good enough!Originally posted by SevenEleven:Small-time businessmen need to feel that the Government is ready to provide all-out support for them.
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sure can ...Originally posted by AndrewPKYap:Wah lao sure or not? Singaporeans so pitiful meh? "four people monthly combined income around $5,000."
Eat grass, like that. People still vote them when they make HDB, medical and transport so ex? Something very not right leh.
Husband -> working with 5K+ per mth salary
Wife -> homemaker (make great sacrifice to take care of family)
+ 2 very young kids
there, 4 person with combined income around $5,000
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TS,
why the other thread of yr s closed by Mod!!!!
I think we should create another Forums n let us talk instead of here!!! -
Because there was another one in CC started by Zheshi.Originally posted by foomwee88:TS,
why the other thread of yr s closed by Mod!!!!
I think we should create another Forums n let us talk instead of here!!!