- Joined
- Dec 30, 2010
- Messages
- 12,730
- Points
- 113
Given the government track record of having large surpluses such as the one recorded for last year, I believe there is no good reason for the GST to be raised as far as the eye can see.
The GST is a regressive tax that punishes the lower income, because the lower income spend a larger percentage of their take home pay on basic necessities. Every increase in GST hurts them disproportionately, unlike the upper income classes who can control their expenditure.
The electorate must remind the PAP of its election promise to hold the GST steady.
If the government needs more revenue to fund social programmes, it should rely on existing budget surpluses instead of pouring them all into the reserves.
In the future when revenue from land sales drops, it might also be time to consider raising income tax levels. Thus far, the government has kept the income tax level low to maintain competitiveness. However, the income tax level is but one factor that determines economic competitiveness. Other factors include having a business-friendly environment, adequate but not stifling regulation, an open and free market, and rule of law as opposed to rule by law.
To maintain competitiveness, we also need to keep costs steady. In the past several years, the cost of living and the cost of doing business in Singapore has risen drastically because of escalating property prices and rentals. This factor alone might have hurt our economic competitiveness.
- http://www.sgpolitics.net/?p=8513
The GST is a regressive tax that punishes the lower income, because the lower income spend a larger percentage of their take home pay on basic necessities. Every increase in GST hurts them disproportionately, unlike the upper income classes who can control their expenditure.
The electorate must remind the PAP of its election promise to hold the GST steady.
If the government needs more revenue to fund social programmes, it should rely on existing budget surpluses instead of pouring them all into the reserves.
In the future when revenue from land sales drops, it might also be time to consider raising income tax levels. Thus far, the government has kept the income tax level low to maintain competitiveness. However, the income tax level is but one factor that determines economic competitiveness. Other factors include having a business-friendly environment, adequate but not stifling regulation, an open and free market, and rule of law as opposed to rule by law.
To maintain competitiveness, we also need to keep costs steady. In the past several years, the cost of living and the cost of doing business in Singapore has risen drastically because of escalating property prices and rentals. This factor alone might have hurt our economic competitiveness.
- http://www.sgpolitics.net/?p=8513
