Singaporeans are the most heavily taxed
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This was a personal writing on mine which I posted on my blog a couple of months back.
Singapore may have one of the lowest personal income tax rate and corporate tax rate in the world, but in reality the PAP employs various schemes of hidden taxation which makes Singaporeans one of the highest taxed citizens in the world.
For a start, those who live in HDB flats don't really own them. They are practically leased from the government for 99 years. The current market rate is sky-high. Many Singaporeans end up ploughing a large part of their life savings into their HDB flat, and they cannot always sell to realize capital gains as people need a roof over their heads. The only way to extract capital gains is to downgrade, which in effect is just transferring one lease to another. You never truly own your HDB flat at all.
GST is creeping up. It may still be much lower than those so-called Value Added Tax in european countries, but the way I see it the gap will continue to close. The reason is that the PAP govt wants a more recession-proof tax base, never mind that it is a tax base that hurts the poor and small businesses the most, compared to the rich and large businesses which tends to have higher profit margins are more insulated against rise of costs at the margin.
GST results in the poor spending a much larger PERCENTAGE of their net income on household items and basic necessities compared to the rich. Even though the rich pay a much higher percentage of their income as direct tax, the fact remains that direct taxes have been kept low or even reduced over the years, while indirect taxes like GST have risen and hurt the poor proportionally more.
Last but not least, medical costs are escalating and rising much greater than the overall rate of inflation. Given that we do not have a comprehensive medical welfare system apart from the flawed Medisave and various Medishield schemes, once again Singaporeans lose out compared to citizens of other countries that have more comprehensive medical welfare policies. Escalating medical costs are therefore increasingly become another major source of "unreported" taxation on ordinary Singaporeans due to the PAP's anti-welfare policies.
The PAP govt likes to flout our low direct tax rates and claim this keeps us competitive.
In reality the economy is made uncompetitive because the PAP power structure entrenches itself in the GLCs and major corporations like Singtel. These bureaucrats lack good business skills and are not wordly-wise, having been sitting behind their desks in their own political ivory towers. Hence, when these PAP bureaucrats and stalwarts entrench themselves as directors, chairpersons and CEOs of these GLCs, they make them uncompetitive, and being monopolistic, they deprive other businesses of the opportunity to compete, innovate, and thrive.
And so the points mentioned above are the reasons why although Singaporeans have the lowest personal income taxes in the world, in reality they are one of the most heavily taxed through indirect means. -
other countries' taxes are being used back on the infrastructure, free education, subsidised medical (or even free), welfare, etc...........
i have no idea our taxed money gone to where, when we need to pay to use the roads, pay to attend school, expensive medical treatments, forever rising public transport fares and so many other stuff we have to pay and pay.......... -
I forsee you will soon be engaged in a very lengthy war of words and opinions, with the resident proPAP... who will choose to not see your point...
best thing to do as such, is ignore the proPAP and discuss with serious logical contributors... -
Many people not aware.Originally posted by FireIce:other countries' taxes are being used back on the infrastructure, free education, subsidised medical (or even free), welfare, etc...........
i have no idea our taxed money gone to where, when we need to pay to use the roads, pay to attend school, expensive medical treatments, forever rising public transport fares and so many other stuff we have to pay and pay..........
We have GST on Water Conservation Tax. This daylight robbery!!!
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ah, we have a reserve which cannot be tapped & it's growing bigger & bigger....err maybe not considering the government needs to use it to pay for wagesOriginally posted by FireIce:other countries' taxes are being used back on the infrastructure, free education, subsidised medical (or even free), welfare, etc...........
i have no idea our taxed money gone to where, when we need to pay to use the roads, pay to attend school, expensive medical treatments, forever rising public transport fares and so many other stuff we have to pay and pay..........
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Hey, increasing GST is to help the poor, you know.
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yeahh.... I know. When I heard about this...I was touch and crying all night long..........Originally posted by charlize:Hey, increasing GST is to help the poor, you know. -
anyone notice that meepok increase by $0.50 at some hawker center ? and many other things also increase but our pay still maintain... how leh
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Quite frankly, lots of services are provided by the Govt or their related companies and we pay for them. Naturally, there will be conflicts of interest for which our esteemed Govt has been quick to make use of this situation to its maximum benefit.
Whether or not the economic growth helps the average joe is an academic question for which I hope some economists would answer but I doubt they would given the miserly bits of information the Govt doles out.
And oh yes, how much sooner before the resident morons arrive? -
Originally posted by Lowclassman:yeahh.... I know. When I heard about this...I was touch and crying all night long..........
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why are there so many mercedes-benz, beamers, lexus, SUVs, MPVs on Singapore roads? -
Yes, agree ! pls do take note of above, or:Originally posted by HyperFocal:I forsee you will soon be engaged in a very lengthy war of words and opinions, with the resident proPAP... who will choose to not see your point...
best thing to do as such, is ignore the proPAP and discuss with serious logical contributors...
...ignore the proPAP
...discuss with logical contributions
...emotional statements are welcomed, but logical contributions are what we learnt end of the day -
why are there so many mercedes-benz, beamers, lexus, SUVs, MPVs on Singapore roads? -
read carefully below. These are the real powers in control of the world.
FRANKFURT, Germany (AP) -- The European Central Bank injected another $83.8 billion into the banking system Friday amid signs that bad U.S. mortgages were digging deeper into the world economy.
But investors did not seem appeased, with major indexes plunging in London, Frankfurt, Paris and Tokyo.
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The 61 billion-euro move by the ECB, which had provided 95 billion euros ($130.7 billion) in funds to banks on Thursday, came after Japan's central bank injected 1 trillion yen ($8.4 billion) into money markets. Early Friday, the U.S. Federal Reserve announced a three-day addition of liquidity. The Fed had already intervened Thursday, injecting a larger-than-normal $24 billion in temporary reserves to the U.S. banking system.
It was the first time the U.S., European and Japanese central banks had taken such action together since the aftermath of the Sept. 11 terrorist attacks. The Australian, Hong Kong and Canadian central banks also joined in. -
Well, there is certainly a rich-poor gap.Originally posted by Daddy!!:why are there so many mercedes-benz, beamers, lexus, SUVs, MPVs on Singapore roads?
Actually, I wouldn't be so certain lots of these would remain. The banks are getting a bit twitchy with the sharp falls in the markets of late. Credit might potentially be tighter. They have been yelling that there will be no more easy credit now. -
Precisely.Originally posted by FireIce:other countries' taxes are being used back on the infrastructure, free education, subsidised medical (or even free), welfare, etc...........
i have no idea our taxed money gone to where, when we need to pay to use the roads, pay to attend school, expensive medical treatments, forever rising public transport fares and so many other stuff we have to pay and pay..........
The govt raises ERP charges, imposes hefty taxes on cigarettes, etc.
All these revenue should be ploughed back to society.
For example, taxes on cigarettes should be used to subsidize medical costs for those Singaporeans who bothered to care for their own health.
The COE revenue should be used to make better roads and improve transportation infrastructure.
Fees collected from foreign students enjoying our education here should be used to build better schools and hire better teachers.
Instead, all the govt's revenue is going into their own pockets. It totally defeats the purpose of all these increased fees!
E-Jay -
You mean the resident hounds?Originally posted by HyperFocal:I forsee you will soon be engaged in a very lengthy war of words and opinions, with the resident proPAP... who will choose to not see your point...
best thing to do as such, is ignore the proPAP and discuss with serious logical contributors... -
The resident PAP hounds say it's bullsh|t, hawker food never increase, things suppose to get cheaper with the GST increase. But when debated further, they normally hide and whimper under their master's kilts.Originally posted by niwde1980:anyone notice that meepok increase by $0.50 at some hawker center ? and many other things also increase but our pay still maintain... how leh -
The reason why citizens of any country pay taxes is so that the govt can use the tax revenue to build infrastructure, and create and maintain essential services like security and defence for the people. That is the purpose of taxation.Originally posted by Fingolfin_Noldor:Quite frankly, lots of services are provided by the Govt or their related companies and we pay for them. Naturally, there will be conflicts of interest for which our esteemed Govt has been quick to make use of this situation to its maximum benefit.
Whether or not the economic growth helps the average joe is an academic question for which I hope some economists would answer but I doubt they would given the miserly bits of information the Govt doles out.
And oh yes, how much sooner before the resident morons arrive?
In Singapore, essential services that the govt is actually supposed to provide are increasingly being privatized or corporatized in some form or other. Now instead of the govt using taxpayer's money to provide essential services for the people, it is pushed to the private corporations and GLCs which are increasingly becoming autonomous.
These private corporations will naturally care about profits and the bottom line. Hence the provision of essential infrastructure and services now becomes a transaction between customer and company, rather than an alliance between citizen and government. That is why the cost of living is rising to much, why these companies providing essential services can push costs to consumers on the pretext of rising raw materials costs.
E-Jay -
Because the rich are getting richer due to cut in income taxes, while the poor are getting poorer due to GST. Previously the super rich have income taxes of 33%, while the poor don't need to pay income tax. But nowadays, the rich gets their income tax reduced to 20% which more than covers them for the 7% GST, while the poor already not paying income taxes has to end up paying 7% GST.Originally posted by Daddy!!:why are there so many mercedes-benz, beamers, lexus, SUVs, MPVs on Singapore roads?
There is no doubt that through this redistribution of income, there will be more rich people, but there are also going to be more poor people. -
to support the world's highest paid gahmen body lor...
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Corporations has a profit motive. It's much worse when you see these government controlled monopolies charging above worldwide equilibrium rates. That's why you see the profits of Temasek keeps rising, through their cross ownerships of the few dominant corporations, they can prevent competition from eroding their profit line.Originally posted by ngejay:The reason why citizens of any country pay taxes is so that the govt can use the tax revenue to build infrastructure, and create and maintain essential services like security and defence for the people. That is the purpose of taxation.
In Singapore, essential services that the govt is actually supposed to provide are increasingly being privatized or corporatized in some form or other. Now instead of the govt using taxpayer's money to provide essential services for the people, it is pushed to the private corporations and GLCs which are increasingly becoming autonomous.
These private corporations will naturally care about profits and the bottom line. Hence the provision of essential infrastructure and services now becomes a transaction between customer and company, rather than an alliance between citizen and government. That is why the cost of living is rising to much, why these companies providing essential services can push costs to consumers on the pretext of rising raw materials costs.
E-Jay -
Guess what PM will talk in National Day rally?
More tax?so gov can help the old age.
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The ultimate winner of the GST increase is the govt.
Corporate taxes have lowered and it will only serve to increase Foreign Direct Investment (FDI) further.
Corporate tax revenue budgeted for 2007 is $8.4 billion compared to 2006's $8.2 billion.
GST revenue will increase by almost $1 billion and yet the amount allocated to Workfare is only $200 million for 2007.
1) Wasn't GST increased primarily to 'cover losses made by the reduction in corporate taxes'?
2) Wasn't GST also raised to aid the Workfare scheme?
The GST increase to cover losses from reduction in corporate taxes is therefore a lie. So is the Workfare proposal. -
boycott those hawkers.Originally posted by niwde1980:anyone notice that meepok increase by $0.50 at some hawker center ? and many other things also increase but our pay still maintain... how leh 