Originally posted by goh meng seng:
Dear Qitai,
Look at it this way. You pay higher taxes, but you don't have to worry about paying school fees for your children, going out of jobs, going bankrupt when you try to start a business but failed...etc. etc.
I may be good for encourage people to have more children!

Don't worry about MNCs not coming to invest. They have their own ways of "Creative accounting" to avoid high taxes.

This is a social contract, a trade off.
Goh Meng Seng
Problem , Mr Goh, is that most singaporeans will not accept that type of social contract.
Take for example :
Everyone wants to get into university
limited university places
have to go overseas
but singaporeans taxed to highly to even consider overseas
so how?
Want to buy HDB flat
( i.e. in stockholm all their places are expensive despite taxes)
Price tag too high
tax also killing the savings
how?
Bearing in mind , swedish wages are phenomenonly high to compensate for a high taxation system. In sweden (if I work there) , I can earn 3k USD per month . Who in singapore wants to pay me that amount? The singaporean job equivalent to that swedish job will only pay me SGD 2K only at most.
Sweden has IT and communication infrastructures, and advanced technological R&D industries - and in order to pay their workers - phone and internet charges in sweden are ridiculously high ...I nearly choked when my friend told me about her trip there - she was whining about her phone bills.
Alot of their MNCs investors are homegrown or came out as a result of a merger- Ikea , Astra-Zeneca (expensive drugs ++++) , Ericsson, Volvo and Saab ( now sold but they still retain factories in sweden), Electrolux, Absolut vodka (their government owned alcohol company) and alot of others. And may I note they use their LOCAL TALENTS ....not FOREIGN ONES. Of course their homegrowns continually invest in the country where they begun their humble beginnings.
Singapore has minimal
homegrown MNCs to employ locals - DBS barely qualify -....Temasek holdings maybe, so far it is Creative that I know is a homegrown MNC . In addition to outsourcing to foreigners - some singaporeans may not even have a job.
So we cannot really compare the swedish system or the scandinavian system to Singapore to implement their socialist policies. One thing to note : they are also protective of their job markets too , they do not have a foreign talent policy like Singapore does.