Why higher consumption tax (GST/VAT) is the right way

[OverTheCounter]

Although consumption tax is regressive, it has the benefit of not hurting our nation's competitiveness unlike higher income tax.

We need higher govt revenues to pay for increased social spending. I believe it to be wrong and unjust that income tax for the rich be raised to fund social spending.

Why should the most productive and creative members of our society be penalised in order to increase social spending? That is plain wrong.

Taxing consumption instead of income is fair and just because everyone has the choice to control and limit how much they consume.

Increasing income tax is unfair because you are punishing the productive people and disincentivising innovation and creativity.


The govt is correct to raise gst instead of income tax.

 

[TopSage]

Consumption tax is highly regressive and hurt the poor who now have to pay this new tax. As a proportion of their income they are hit badly because they need to spend almost all their income to survive. GST hikes will cause social inequity to rise......making things more unfair to the most financially vulnerable members of our society.

The pap ha been pro business for last 4 decades weakening the unions and eliminating laws that protect labor. They allowed the biggest foreign influx per capita in the world o satisfy demand from business for cheaper labor.This caused the wages of ordinary Singaporeans to fall or rise at slow rate and their families had to suffer financially..

It is only fair that those who benefited the most from PAP's highly unbalanced system to my more in taxes to aid those who fell through the cracks. Today there is excessive executive compensation and underpayment of low wages workers. It is only wise and fair to implement progressive taxation to benefit society as a whole.

If I am a pure anti pap person and just want them voted out ASAP, I would like to see GST hike because it will further strain our social divide and swing more votes to the opposition

 

[The_Hypocrite]

GST is a tax that is an easier way out for gahmens to raise revenue. Its inflation proof and encourages the gahmen into rent seeking behaviour as the more inflation there is, the greater the revenue. the current pap assholes are already squeezing blood from the people...increasing GST without cutting back gahmen spending,,like a 50% pay cut for the superscales and other efficiencies like getting rid of scholars and tummysick etc etc will just let pap squeeze blood from a stone. the people have suffered enough.

 

[OverTheCounter]

Consumption tax is highly regressive and hurt the poor who now have to pay this new tax. As a proportion of their income they are hit badly because they need to spend almost all their income to survive. GST hikes will cause social inequity to rise......making things more unfair to the most financially vulnerable members of our society.

The pap ha been pro business for last 4 decades weakening the unions and eliminating laws that protect labor. They allowed the biggest foreign influx per capita in the world o satisfy demand from business for cheaper labor.This caused the wages of ordinary Singaporeans to fall or rise at slow rate and their families had to suffer financially..

It is only fair that those who benefited the most from PAP's highly unbalanced system to my more in taxes to aid those who fell through the cracks. Today there is excessive executive compensation and underpayment of low wages workers. It is only wise and fair to implement progressive taxation to benefit society as a whole.

If I am a pure anti pap person and just want them voted out ASAP, I would like to see GST hike because it will further strain our social divide and swing more votes to the opposition

You can always choose to consume less. You can always do with a smaller TV set, wash your clothings by hand instead of by machine, have home-cooked food instead of eating out, etc. The choice is always yours.

Had it not been for the pro-business policies, the unemployment rate would be higher and the poor will be begging for food. If you want to help the poor, the best thing you can do for them is create jobs. Direct taxation does not create jobs -- it kills jobs.

There are many ways to make the rich return more to society without killing entrepreneurship through increased direct taxation. You can impose 15% VAT on luxury goods, for example. The issues of excessive executive compensation and income inequity cannot be solved by increasing taxes. I'm pretty darn sure of that.

 

[eatshitndie]

it applies well in sg because sg is a net importer of luxury items, and consumption habits are not directly comparable to that of the u.s.a.

 

[OverTheCounter]

it applies well in sg because sg is a net importer of luxury items, and consumption habits are not directly comparable to that of the u.s.a.

The major economies will all eventually have to wrestle with tax reform as well as implement some form of consumption tax. It is inevitable.

Singapore is ahead of the pack in that we have an enlightened policy of low taxes, high savings, zero deficits, and self-reliance. Our model will withstand the test of time. The best charity the government can do is to teach its people how to fish instead of fishing for them.