Singapore - Place where the rich get richer, the poor gets..
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Poorer.
Heard about the abolishment of Estate Tax duty just today. Why abolish sumthing that is out to minimise the income gap??
SINGAPORE will abolish estate duty, or taxes collected on wealth left behind after an individual’s death, Finance Minister Tharman Shanmugaratnam announced on Friday.
‘If we make Singapore an attractive place for wealth to be invested and built up, whether by Singaporeans or foreigners who bring their assets here, it will benefit our whole economy and society,’ he said in his budget speech in Parliament.
It will cost the government $75 million a year, he said.
Singapore inherited estate duty from the British. The rates originally were high - and until 1984, the top rate was 60 per cent.
The current rates are much lower - five per cent for the first $12 million of dutiable assets and 10 per cent thereafter.
On the removal of the estate duty from the tax regime, with immediate effect, Mr Shanmugaratnam said: ‘Estate duty is a means to rebalance opportunities with each new generation and prevent wealth from being concentrated in fewer and fewer hands over time.’
‘It was especially relevant at the time when the bulk of wealth comprised land that was passed down through the family. Today, however, wealth is being created in many more ways and by a wider group of entrepreneurs, many of whom start off with little.’
‘Wealth is also being managed today on a global basis. Proponents of removing estate duty have therefore argued that removing it would encourage wealthy individuals from all over Asia to bring their assets into Singapore, thus supporting the growth of the wealth management industry.’
‘Ordinary Singaporeans have also argued that having worked, paid taxes on their income and property, and built up their savings, they want to be able to pass it on to their families. Some are in fact liable for Estate Duty when their estates receive large life insurance payouts.’
The Minister said the current low exemption limit for non-residential assets, set at $600,000, compared to the higher limit of $9 million for residential properties in fact tends to affect the middle and upper-middle-income estates disproportionately compared to wealthier ones.
‘I have therefore decided to remove Estate Duty from our tax regime, with effect from today. It is not just a practical or expedient measure, but one that on balance will be in our collective interest.’
‘If we make Singapore an attractive place for wealth to be invested and built up, whether by Singaporeans or foreigners who bring their assets here, it will benefit our whole economy and society, not just the individuals who build up their wealth. It is not a zero sum game.’
On why this should be retained, the minister said: ‘It is an efficient tax, set at a low rate in relation to the full value of the property, especially for owner-occupied homes. You cannot tax-plan it away. It also does not affect our middle and upper-middle-income estates disproportionately compared to wealthier ones.’
‘This is why most countries have some form of tax on property - including even Hong Kong, which like us does not have capital gains tax and has already done away with Estate Duty. Only Ireland does not have a tax on residential property, but the Irish have capital gains tax, inheritance tax and gift tax.’
Onli the rich will haf assets >9million. So obviously the abolishment will help the rich ppl ( read : civil servants i tink u noe who i am refering to ) secure their wealth to be passed down to the next generation.
Obviously, a certain Lee is expected to pass on soon, so he can leave his assets to his future generationss.
This is pathetic. In my opinion, it's very unethical to see the rich spend money like water while the poor need to scrimp and save on meals just to make ends meet. The income disparity in Singapore is climbing so how the gahmen can turn a blind eye on it is simply appaling.
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i think this is a perverse move.
the minister also seemed anxious to abolish the tax; of all the changes to be implemented this was the only one that took immediate effect.
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ya, tt's why my statement of a Lee passing on.
As an undergraduate, i feel that there is no compelling reason for me at all to stay in singapore upon graduation if all the gahmen cares about is to help the rich preserve their massive amounts of moolahs and leaving the other tax payers to take care of the poorer people.
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I don't agree with your statement.
It should read:
The rich gets filthy rich, the poor gets $300 a month.
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Originally posted by charlize:
I don't agree with your statement.
It should read:
The rich gets filthy rich, the poor gets $300 a month.
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Originally posted by motoway:
ya, tt's why my statement of a Lee passing on.
As an undergraduate, i feel that there is no compelling reason for me at all to stay in singapore upon graduation if all the gahmen cares about is to help the rich preserve their massive amounts of moolahs and leaving the other tax payers to take care of the poorer people.
There is a speech by MM Lee that as many as 1000 locals left to migrate to other countries each year. -
Originally posted by will4:
There is a speech by MM Lee that as many as 1000 locals left to migrate to other countries each year.
If that is the case, shouldn't they find the root cause?Maybe it's the sickening polices like this that forces people to leave?
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Originally posted by will4:
There is a speech by MM Lee that as many as 1000 locals left to migrate to other countries each year.
But he also said there were enough number of foreigners who stayed on and didn't seem bothered with the locals who left. -
Originally posted by pearlie27:
But he also said there were enough number of foreigners who stayed on and didn't seem bothered with the locals who left.
I think if not wrong for every 1 local left, there is another 4 waiting to replace the local. Last time, PM Lee said 800 localsleft each year but MM Lee said 1000 left each year but could the migration figure be much higher? There is too much competition from foreigner to locals. Sometimes the forign profeessional not interested to stay permanently be it white collar or blie collar.
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Abolish, so those who are old, old, old and damn rich, rich, rich can move here with their funds... and no worries about their assets being taxes when they die here
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yea, and the abolishment serves no purpose except for the rich to benefit.
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actually if dont abolish will get their accountants to circumvent anyway. They should say how much revenue they make from estate tax to gauge how much the rich are willing to pay taxes in Singapore.
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Estate Tax Duty is an unfair tax, because it double tax the income of her people.
It is a good move to remove this.
Just because a person is richer, doesn't mean he/she should be "punished".. for the sake of the lesser rich.
If we want to seek fairness, we should also not discriminate.
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This was written more than two thousand years ago.
The Parable of the Ten Minas
Lk 19:11 While they were listening to this, he went on to tell them a parable, because he was near Jerusalem and the people thought that the kingdom of God was going to appear at once. 12 He said: “A man of noble birth went to a distant country to have himself appointed king and then to return. 13 So he called ten of his servants and gave them ten minas.1 ‘Put this money to work,’ he said, ‘until I come back.’
Lk 19:14 “But his subjects hated him and sent a delegation after him to say, ‘We don’t want this man to be our king.’
Lk 19:15 “He was made king, however, and returned home. Then he sent for the servants to whom he had given the money, in order to find out what they had gained with it.
Lk 19:16 “The first one came and said, ‘Sir, your mina has earned ten more.’
Lk 19:17 “ ‘Well done, my good servant!’ his master replied. ‘Because you have been trustworthy in a very small matter, take charge of ten cities.’
Lk 19:18 “The second came and said, ‘Sir, your mina has earned five more.’
Lk 19:19 “His master answered, ‘You take charge of five cities.’
Lk 19:20 “Then another servant came and said, ‘Sir, here is your mina; I have kept it laid away in a piece of cloth. 21 I was afraid of you, because you are a hard man. You take out what you did not put in and reap what you did not sow.’
Lk 19:22 “His master replied, ‘I will judge you by your own words, you wicked servant! You knew, did you, that I am a hard man, taking out what I did not put in, and reaping what I did not sow? 23 Why then didn’t you put my money on deposit, so that when I came back, I could have collected it with interest?’
Lk 19:24 “Then he said to those standing by, ‘Take his mina away from him and give it to the one who has ten minas.’
Lk 19:25 “ ‘Sir,’ they said, ‘he already has ten!’
Lk 19:26 “He replied, ‘I tell you that to everyone who has, more will be given, but as for those who have nothing, even what they have will be taken away.The last verse. The rich get richer, the poor gets poorer since the time immemorial. In context, it means be wise with your money.
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create a unit trust and put all your wealth and properties in it. the ex-owner will be become trustees.
that is one way to avoid taxes.
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They abolished the tax so that more of the filthy rich overseas want to put their money in Singapore.
Anyway, the rich getting richer and the poor poorer happens everywhere in the world
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Originally posted by elindra:
They abolished the tax so that more of the filthy rich overseas want to put their money in Singapore.
Anyway, the rich getting richer and the poor poorer happens everywhere in the world
Nooooooo........They abolish the tax.. so that the smart and rich Singaporeans don't need to park their riches overseas........
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They should not abolish the estate tax. The tax collected should be used to help the poor, sick, handicap and the aged especially in today increasing prices of food, transportation and many other items.
The government always say that there is not enough to help the sick and the poor and hence the money need to be given to some but not the others.
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anyway where are income gap b/w rich n poor across the world