atans1

Welfarism the PAP way/ The last word on GST

In Economy, Financial competency on 08/03/2018 at 9:54 am

Here corporates get welfare, not the people: and its foreign corporates that get the best goodies. PAP is not against welfarism so long as the beneficiaries are corporates, especially if they are foreign-owned. Ang moh tua kee kind of fascist movement?

Don’t believe me?

Well a friend, a respected economist, wrote

In Singapore’s case, there are other reasons to avoid the GST: In the context of an economy where there is an extraordinarily high profit share of GDP, is it appropriate that households bear a higher proportion of taxation than corporates? Our very rough estimate is that the direct taxes plus indirect taxes plus various levies paid by the household sector amount to about 11% of GDP, whereas the equivalent for the corporate sector is around 6%.

And

Given that foreign shareholders earn roughly half of the profits accruing to the corporate sector, the burden on Singapore households seems already to be unevenly high. This being the case, it does not seem appropriate to increase the burden on the household sector even more by increasing the GST rate.

Writer is Manu Bhaskaran. He was Tharman’s cell mate when they were convicted of breaching the Official Secrets Act. OK, OK, they were only fined. Btw, that incident showed that S’pore is a place of laws. Manu talked to his old boss in Mindef (Manu’s a scholar), BG Yeo, but BG Yeo couldn’t help. But maybe BG Yeo was ball-less or powerless, or both?

Sorry back to the article. Do read https://www.theedgesingapore.com/singapore-funding-its-rising-social-spending-right-way. Lots of other good stuff that show the fallacies of Hard Truths on Reserves, GST and govt spending.

Examples

And this brings us to the nub of the issue: What is the optimal savings rate for a country like Singapore? Savings is not an end in itself; it is the welfare of the citizens that is the end. Simply accumulating savings continuously is not the right thing to do — the right approach is to look holistically at all the determinants of welfare and then decide an optimal savings rate.

And

The thrust of the discussion above essentially leans to a view that Singapore is probably already saving enough and may even have exceeded the optimal savings rate. In that context, the better approach to funding rising social spending is to use more of the income from investments and to not raise taxes, be it the GST or some other tax.”

 

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  1. Corporates are even more pampered considering not only they did contribute less taxes but they do so while owning over 50% of the output.

    • this shows the budget tax distribution; corporate income tax is higher than personal income tax; the indirect taxes – GST, COE, ARF, etc, are indirectly paid by consumers, so in total individuals pay considerably larger part of tax than companies, but even corporate income taxes are indirectly paid by individuals – companies have less money to use for dividends, share buybacks, etc.

  2. I hope PAPies increase taxes even more … capital gains taxes will be a good one!

    CGT was mentioned by some MPs in passing Hohoho!!

    The only way to wake up sinkies is to hit them where it hurts!

    • only morons want CGT with its complications: if I buy X shares of DBS, Y shares a year later, and sell Z shares another year after, I have to remember all the buy history to know my capital gain/loss; if gains are taxed, losses need to be used to reduce tax, and I need to time my sale of losing shares to maximize the tax benefits, i.e., if this year my income is high and I anticipate next year not so high, I sell losing shares in december to claim my loss on this year’s income and get more tax benefit from the higher income bracket

      • yuenchungkwong,

        Wouldn’t that make you vote against the PAPies?!?!
        The only way to the brains of the masses is thru their balls!

        Unless you’re a practicing CPA — then you’ll be very happy!! Hohoho!!!

        No matter what, a big sacrifice is needed to change the govt for the better …. big sacrifice today … or fucking big sacrifice down the road.

  3. man why r u so obsessed about voting? I am not a voter, and what I said about CGT applies to any party, any country

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