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Posts Tagged ‘Tax’

Why S’pore is so shiok for private property investors

In Political economy, Property, Public Administration on 12/11/2018 at 9:46 am

Look at the table and note that here holding costs (i.e. interest paid) for 5 yrs (assumes no profit from sale after 5 yrs) and fees payable (taxes, duties) very low compared to rest of the world bar a shithole of a city. The PAP govt treats private property investors better than they treat otters (TRE Cybernut says PAP has created paradise for otters not citizens)? $ means US$.

Waz there not to like about the PAP if u are an investor in private property?

Compare this to if u bot a resale HDB flat: Will resale flat owners still vote for PAP in next GE? and Will this resale flat buyer vote for PAP in next GE?

Taxes on MNCs: 4G leaders should relook

In Economy on 11/05/2018 at 5:26 am

Recently I wrote:

To show S’poreans that saying that they want to earn the right to lead is more than BS, the coming generation of leaders should start looking at Hard Truths that have become irrelevant or were wrong in the first place.

Healthcare: user fees drives up costs

Here’s another Hard Truth that should be relooked. It’s a Hard Truth that MNCs should be given tax incentives so that they invest here. But the premise of such a Hard Truth no longer is valid

As Paul Krugman pointed out in his regular NYT column:

In the world according to Trump officials, or right-wing think tanks like the Tax Foundation, corporate profits are basically a return on physical capital — on bricks and mortar and machines. Cut taxes, and companies will add more physical capital, increasing competition for labor, and profits will go down while wages go up.

Apple, however, is nothing like that. Its profits come from its market position — its brand, if you like. It doesn’t matter whether you think it deserves its role as a quasi-monopolist; what matters is that given its position, it can and does charge what the market will bear, pretty much regardless of costs. If Trump cuts its taxes, it gets to keep more of its profits, but it has no real incentive to change its behaviour by, say, building more Apple stores. It just takes the extra money and either sits on it or hands it back to stockholders via buybacks.

4000% increase if estate duty replaces GST increase

In Economy on 31/01/2018 at 12:47 pm

There’s a lot to talk in cyberspace of reintroducing estate duty in place of a GST rise.

But none of the people proposing the reintroduction of estate duty seems to have gone thru the numbers.

We had estate duty and it brought in

an estimated S$75 million a year — the average annual amount collected before it was scrapped.

Compare that $75m to the rumoured GST rise expected to bring in $3 billion to $3.6 billion a year.

Experts have said they expect the GST to be raised by 2 percentage points to 9 per cent — translating to additional tax revenue of between S$3 billion to S$3.6 billion a year.

http://www.todayonline.com/singapore/where-spores-additional-tax-revenue-could-come-experts

So do the people who propose the return of estate duty really expect estate duty to be raised from its previous level so that it can replace the GST increase? From $75m to $3bn means a humongous increase: 4000%.

Did they do their sums? Did they analyse where $3bn a year in estate duty can come from? Is it targeted only at the super rich or is it across the board? And, if the latter, will S’poreans want such a high estate duty tax? And if targeted at the super rich, have the proposers taken into account the lumpiness of the tax. When there was such a tax, one year there was a big jump because Khoo Teck Puat died.

Or as usual, are the proposers: juz talking cock and singing song? They only want to show S’poreans that cybernuts don’t do their homework before opening their asses to fart?

There could be a case to revive estate duty as a means of redistributing income, but that is a different story from reviving it and increasing it by 4000% from the previous level to avoid an increase in the GST rate.

 

 

Corporate tax rates: S’pore not lowest

In Economy on 05/12/2015 at 4:51 am

And UK if not that far from us.