That is elementary watson.
By taxing and withholding spending on basic government services it is as simple as that.
If a government does not spend on taxes but recovers all costs of providing services from
charging fees separately for basic government services in the name of avoiding welfarism, then what will
happen to all the tax monies?
Singapore's income taxes and fees and charges easily exceed $2
billions per year. Capital gains from lands and infrastructures owned
by people creamed off from all GLCs easily total some 2-5 billions per
year.
Why must GIC make any monies from investments? All it needs to so is to tax and keep collecting the taxes as there is no need to spend them with most government
departments charging separately again for services provided. GLCs are formed for commercialising such basic government services thereby recovering all possible costs through a system of charging
to break even or make profits.
In addition, how much are the capital gains made from sale of people's lands and assets
and transfer of sale proceeds of such lands and assets sold to GLCs
created to charge market fees all over again despite the taxes already collected for such services.
For all we know or care to know most of the $300 billions in government's kitty are hoarded tax monies or profits generated
by the GLCs through double charging of people.
How does the Government hoard billions in surpluses ?
By spending billions in questionable and doubtful assets that more discerning hard nose investors will not touch, and then call it a bargain for the longer term.
The money is not kept in Singapore, but in the largesse of overseas entrepreneurs, who are daring enough to create a shell game to con the billions from one who is too pompous to admit that he is an entrepreneurial newbie - too old to learn new tricks, and too dogmatic with his old habits.
well said to both..
by taxing more than it should with the excess going into "reserve" that the Elected President cannot even know