Our Spending Power down.. feel the pinch?

[pia]

Compare to others country we are much better. Just compare Malaysia, Thailand,China and US.

No no no... if that's the case, I wouldn't have started the thread. Look at the stats... the countries like Thailand and China ARE much better.

 

[jw5]

i felt the pinch since 14th Nov 2006

bro zhihau
Why 14 Nov 2006?

 

[pia]

i felt the pinch since 14th Nov 2006

You felt the pinch during the "Golden PEriod"? Then get ready for the TKO

 

[zhihau]

bro zhihau
Why 14 Nov 2006?

i think that's the date when they announce the GST increment... 7% GST is to help the poor woh... you didn't read the hyperlink?

 

[zhihau]

You felt the pinch during the "Golden PEriod"? Then get ready for the TKO

bro,

wrong chronology lah... the Golden Period was only mentioned in early 2008 if i recall correctly... i felt the pinch since 2006...

 

[jw5]

i think that's the date when they announce the GST increment... 7% GST is to help the poor woh... you didn't read the hyperlink?

Nope, I didn't read the hyperlink, sorry...........
Actually in my opinion, a broad-based consumption tax such as the gst is probably necessary in a whole package of tax revenues for any government. But if anyone dares to say that increasing the rate helps the poor, that is clearly bullshit.
Subsidies and rebates can be given out, but these are one off. The increase is forever until the decision is changed.
In trying to attract investments, companies and wealthy individuals by lowering corporate and individual tax rates and giving other incentives, while increasing gst, the burden has been shifted to the masses, which of course includes the ordinaryman and the poor guy.
This is something that irritates me no end. :(

 

[pia]

Actually in my opinion, a broad-based consumption tax such as the gst is probably necessary in a whole package of tax revenues for any government. But if anyone dares to say that increasing the rate helps the poor, that is clearly bullshit.
....In trying to attract investments, companies and wealthy individuals by lowering corporate and individual tax rates and giving other incentives, while increasing gst, the burden has been shifted to the masses, which of course includes the ordinaryman and the poor guy.
This is something that irritates me no end. :(

The GST, consumption or poll tax has been touted as a fairer tax for poor people. The richer spends more, so is taxed more by way of the GST.

Income taxing by tax brackets also serves the poorer people as they pay according to their income.

That GST helps the poor, yes. But INCREASING GST to help the poor, somebody is failing or deliberately fails to understand the concept. That's what erking me as well. Otherwise, I've no issue with tax structure in S'pore.

Another thing is the tying up of CPF funds and the reluctance to release more budget surplus for needy welfare. Someone with $100k in CPF may be working as a cleaner or worse, bankrupt or destitute. While it seems noble to say, we're saving your money for your retirement, it doesn't make sense when you can't save the present for want of the future.

And how much is finally enough for hoarding reserves and showing budget surpluses to the world that this is a great place to invest in??

 

[yinyang]

But INCREASING GST to help the poor, somebody is failing or deliberately fails to understand the concept. That's what erking me as well. Otherwise, I've no issue with tax structure in S'pore.
Someone with $100k in CPF may be working as a cleaner or worse, bankrupt or destitute..seems noble to say, we're saving your money for your retirement, it doesn't make sense when you can't save the present for want of the future

Not just incidence of, but also the multipier effect of increasing consumption tax falls more squarely on lower income.:(

On things CPF, been messing about even upon retirement. Another example of our benign autocracy?

 

[zhihau]

Nope, I didn't read the hyperlink, sorry...........
Actually in my opinion, a broad-based consumption tax such as the gst is probably necessary in a whole package of tax revenues for any government. But if anyone dares to say that increasing the rate helps the poor, that is clearly bullshit.
Subsidies and rebates can be given out, but these are one off. The increase is forever until the decision is changed.
In trying to attract investments, companies and wealthy individuals by lowering corporate and individual tax rates and giving other incentives, while increasing gst, the burden has been shifted to the masses, which of course includes the ordinaryman and the poor guy.
This is something that irritates me no end. :(

bro, i couldn't say it any better.

 

[The_Latest_H]

The GST, consumption or poll tax has been touted as a fairer tax for poor people. The richer spends more, so is taxed more by way of the GST.

Income taxing by tax brackets also serves the poorer people as they pay according to their income.

That GST helps the poor, yes. But INCREASING GST to help the poor, somebody is failing or deliberately fails to understand the concept. That's what erking me as well. Otherwise, I've no issue with tax structure in S'pore.

Another thing is the tying up of CPF funds and the reluctance to release more budget surplus for needy welfare. Someone with $100k in CPF may be working as a cleaner or worse, bankrupt or destitute. While it seems noble to say, we're saving your money for your retirement, it doesn't make sense when you can't save the present for want of the future.

And how much is finally enough for hoarding reserves and showing budget surpluses to the world that this is a great place to invest in??

Jesus, GST is always gonna affect the poor more than the rich. I mean, the rich can afford to buy anything from anywhere around the world, and escape the GST.

The poor has to spend a lot of their money on food, oil and necessities, and GST is heavily imposed on this because people will usually buy regardless of price. The demand for all three are inelastic in a sense, and hence if there's an increase in GST in all three, the government makes more money, not less, and consumers will be less satisfied.

And you think the rich will pay? No. Its the working and middle class people who will pay. And since the government dominates the private sector locally, you end up paying more than just taxes to the government. No longer living standards are so high in Singapore. Maybe a dollar now doesn't even mean a dollar- it may be 25 cents now instead.

 

[pia]

Jesus, GST is always gonna affect the poor more than the rich. I mean, the rich can afford to buy anything from anywhere around the world, and escape the GST.

The poor has to spend a lot of their money on food, oil and necessities, and GST is heavily imposed on this because people will usually buy regardless of price. The demand for all three are inelastic in a sense, and hence if there's an increase in GST in all three, the government makes more money, not less, and consumers will be less satisfied.

Agreed there'll always be "ingenious people woh will find ways to minimise paying taxes, and the rich have more resources to find more ways. The poor do, too, e.g. running across the causeway to buy essentials etc.

Like I mentioned, I've no grouse against the tax structure, albeit nothing is fair to everyone, but a government, or the country, must have revenue for public serives and infrastructure, and taxation is one of the legitimate avenues.

My grouse is the excessive money held in CPF and reserves not released for the real needy.

 

[jw5]

The GST, consumption or poll tax has been touted as a fairer tax for poor people. The richer spends more, so is taxed more by way of the GST.

Income taxing by tax brackets also serves the poorer people as they pay according to their income.

That GST helps the poor, yes. But INCREASING GST to help the poor, somebody is failing or deliberately fails to understand the concept. That's what erking me as well. Otherwise, I've no issue with tax structure in S'pore.

Another thing is the tying up of CPF funds and the reluctance to release more budget surplus for needy welfare. Someone with $100k in CPF may be working as a cleaner or worse, bankrupt or destitute. While it seems noble to say, we're saving your money for your retirement, it doesn't make sense when you can't save the present for want of the future.

And how much is finally enough for hoarding reserves and showing budget surpluses to the world that this is a great place to invest in??

The government is terrified that we poor ignorant peasants will squander away our cpf if we are allowed to withdraw it while we are able to walk around and spend it. God forbid that this happens and we will have to go to them for handouts when we are old and full of beans and SG becomes a welfare state.
Another reason is of course that they may need the funds for investments or "nation-building".

 

[Wobble]

good reasoning....else Temasick where go funds to go investment....GID where got moeny to invest overseas

 

[pia]

The government is terrified that we poor ignorant peasants will squander away our cpf if we are allowed to withdraw it while we are able to walk around and spend it. God forbid that this happens and we will have to go to them for handouts when we are old and full of beans and SG becomes a welfare state.

Better be a fool and part with my own money, than a bigger fool who lets others part my money from me

 

[po2wq]

... 7% GST is to help the poor woh...

dun b surprised if u c a figure bigger than tis in ze near future ...

 

[pia]

dun b surprised if u c a figure bigger than tis in ze near future ...

Isn't it a well-known fact that the eventual figure is 10%? The kind people are increasing it gradually to so as not to help us too much. If they help us by increasing straightaway to 10%, we may develop a clutch mentality

 

[zhihau]

dun b surprised if u c a figure bigger than tis in ze near future ...

yes. i've heard it's 10% and even thou' M'sia also now charging 10% GST, the costs of living in M'sia is relatively lower, and thus the peoples end up having slightly more disposable income with even have decent savings.

 

[po2wq]

... even thou' M'sia also now charging 10% GST, ...

msia where gt gst? ... ... nt dat me noe of anyway ...

... the costs of living in M'sia is relatively lower, and thus the peoples end up having slightly more disposable income with even have decent savings.

tiz nt really true ... u r converting ur sgd salary in2 myr n do ze comparison ...

if u earn ur keep in msia, u wil find dat u oso easily money no enuf ...

if u compare using a pay in sg of 3000 sgd$ n a pay in msia of 3000 myr$, u find dat ur monthly expenses r more ...

simple eg:
in sg ...
chicken rice $2.50
coke $1.20
simple total meal cost: $3.70

in msia ...
chicken rice $3.30
coke $2.00
simple total meal cost: $5.30

u can c fr tis eg dat ze %age of ur salary dat u spend on meals in msia is oredi much more ...

wat r cheaper in msia r mainly cars n houses ...

 

[pia]

wat r cheaper in msia r mainly cars n houses ...

That is a big chunk of disposable income to release.. so it's true, the cost of living in M'sia IS lower

 

[Wobble]

Malaysian cousin came here...analysed...and say...not taking conversion of exchange rate into consideration....KL is dearer than SG...one bowl of mee there costs almost RM$4 liao...