How singapore's rich pay 0% tax and poor pay 40%

[makapaaa]

[h=1]INVERSE ROBIN HOOD: HOW SINGAPORE'S RICH PAY 0% TAX AND POOR PAY 40%[/h]
Post date:
26 Dec 2014 - 9:44am








Singapore is a wicked regime whereby the rich can pay almost 0% tax, meanwhile the effective tax rate for poor in my estimate is more than 40%. For a rich person that earns for example S$10 million, from dividends, he will pay almost NO tax at all.

Tax burden on poor

For a poor man earning $2000, he is not going to be able to retire and withdraw anything meaningfully from CPF due to minimum sum requirement and inflation. Just as the some economist view social security contribution as taxation, we assume that CPF is a form of tax.

Due to high cost of living, the poor man would be living hand to mouth every month, having zero savings. Hence, all his remaining income is subject to 7% GST. Together with CPF contribution rate of more than 30%, the poor pays around 40% of tax.






Shifting tax burden to the poor

PAP has all these while been giving their own class of people tax cut goodies by providing excuses that the tax cut help to develop financial center and spurs the relocation of high net worth individuals.

Therefore, taxes on dividends are cut to 0 together with other cuts that benefit only the rich. Meanwhile, to compensate lost of tax revenue, PAP make the poor pay by introducing the regressive GST and hiking it to 7%.

Alternative tax system

The GST is a regressive tyranny that we should do away with. The lost of tax revenue in earlier cut can be fully compensated by implementing landed property tax. Since foreigner is restricted from buying landed property, such tax will claw back earlier tax cut to the local rich elite.

And since landed property tax only hit elite citizen owning landed property, it will not affect the development of financial center. It will not have no impact on any high net worth foreigner wanting to migrate here, so long if they do not buy landed property. Unfortunately, nothing is going to stop our elite from ducking tax burden and dump it to the poor Joe.

Veritas
*Article first appeared on http://veritas-lux.blogspot.sg/2011/07/inverse-robin-hood-1-how-singapor...

 

[JohnTan]

Veritas should do some research before talking nonsense like a typical opposition supporter. Dividends come from a company's PROFIT AFTER TAX, not gross profit. The dividend money an average retail shareholder receives has been taxed at the corporate rate of 17%.

It only feels like 0% tax because the government collects the tax first, where for income tax, you collect your income first and pay the the tax later. It is about messing around with your mind.

Stupid opposition supporter. That's why over 65% of us voted for a PAP-affiliated president.

 

[Leongsam]

If the poor want to pay 0% tax, then they should get rich and join the party.

 

[eatshitndie]

there are taxable and non-taxable dividends in sg. all one has to do is look up the iras website.

http://www.iras.gov.sg/irasHome/page04.aspx?id=146

capital gains in the form of profits made from selling shares and other financial instruments are not taxable.

http://www.iras.gov.sg/irasHome/page04.aspx?id=152

 

[Asterix]

there are taxable and non-taxable dividends in sg. all one has to do is look up the iras website.

http://www.iras.gov.sg/irasHome/page04.aspx?id=146

Indeed that is true in theory
However if one stops to think
He will notice exemptions are very wide
Practically most dividends are exempt
If you have problems working it out
From materials available on IRAS website
Can help you out but spoon feeding
Is not my favourite activity so let's see

 

[virus]

If the poor want to pay 0% tax, then they should get rich and join the party.

i'm rich with sperm... i dont mind donating some to tin tin to make her preggy and somemore to jo and halimah for their facial. so can i join the PAPzi and pay no tax?

 

[chootchiew]

The rich - Altogether now..HUAT AH !

The poor - Altogether now.. SONG AH !

 

[parrardee]

Are not dividends already taxed at source?

 

[Equalisation]

Yes. It reminds me of the massacre at the province of Luen Yat when the peoples' power of command is compromised !:o

 

[Asterix]

Are not dividends already taxed at source?

Generally, the following dividends are not taxable:
...........
Foreign dividends received in Singapore on or after 1 Jan 2004 by resident individuals.

http://www.iras.gov.sg/irasHome/page04.aspx?id=146

For starters are all underlying profits taxed at same corporate rates in all countries around the world? Do not many First World countries treat dividend as a separate source of income subject to another layer of tax? If one desires the benefit of limited liability should there not be a price to pay in terms of accountability and perhaps an additional layer of taxation subject to such reductions as are deemed appropriate by the People and not the Tyrant so as not to unduly penalise corporate ownership of businesses?

By the way I am an intelligent atheist but most definitely not an accountant

 

[CoffeeAhSoh]

Yes. It reminds me of the massacre at the province of Luen Yat when the peoples' power of command is compromised !:o

 

[singveld]

If the poor want to pay 0% tax, then they should get rich and join the party.

or immigrate to brunai , saudi arabia or quatar.

 

[Leongsam]

or immigrate to brunai , saudi arabia or quatar.

Actually there was a year when my company actually collected more from the government than it paid in taxes which meant my tax rate was negative.

 

[singveld]

Actually there was a year when my company actually collected more from the government than it paid in taxes which meant my tax rate was negative.

you made mistake in your taxes.

 

[Leongsam]

you made mistake in your taxes.

The company was given a tax holiday and I applied for every grant under the sun.

 

[chootchiew]

The company was given a tax holiday and I applied for every grant under the sun.

Why is it all my fucking grants were rejected whereas you are entitled to every grant under the sun ? What fucking relationship you have with PAP ?

 

[looneytan]

... I applied for every grant under the sun.

I heard tonychat applied for every hole under the son.

 

[Leongsam]

Why is it all my fucking grants were rejected whereas you are entitled to every grant under the sun ? What fucking relationship you have with PAP ?

The relationship was with the EDB. They were very helpful.

 

[chootchiew]

The relationship was with the EDB. They were very helpful.

This is fucking unfair. Till today I did not managed to become any parties doggie.

 

[Leongsam]

This is fucking unfair. Till today I did not managed to become any parties doggie.

You have to learn to say the right things to the right people. Even if they don't have direct authority to help you they'll teach you how to put on a good "wayang" for the appropriate person.

I do have to point out that not all my grant applications were approved. However, I managed to net the important ones.