Inverse Robin Hood 1: How Singapore's rich pay 0% tax and poor pay 40%

[Confuseous]

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.

- http://veritas-lux.blogspot.sg/2011/07/inverse-robin-hood-1-how-singapores.html

 

[Bigfuck]

I have already raised this before. Singapore is a regressive tax system. If you look at things carefully, the middle class and beloww pay an effective tax likely greater than 50% while LKY pays none and uses our money. Never trust a snake that tells you how tough his life was while flying 1st class in the 1950s onwards, which is worth the pays of several Singaporeans a year.

 

[eErotica69]

I have already raised this before. Singapore is a regressive tax system. If you look at things carefully, the middle class and beloww pay an effective tax likely greater than 50% while LKY pays none and uses our money. Never trust a snake that tells you how tough his life was while flying 1st class in the 1950s onwards, which is worth the pays of several Singaporeans a year.

Chump CPF is not a tax.

 

[sleaguepunter]

Chump CPF is not a tax.

Yes, it a donation fund for temasick gambling capital.

 

[Bigfuck]

Chump CPF is not a tax.

It is a de facto tax. You have to look at how it is worked with pensions. Furthermore, we have now converted it into a fake low paying pension. Look, in the beginning, it is forced savings which you can take out all of it. Now that is a savings account. Now, medisave cannot touch, minimum shit sum cannot touch. I can tax you and give you some degree of fake autonomy when there is really none. It is a defacto tax. It is this tax that 34% TT greedily milked employers in 1985 to cause a recession in SGP. So best to take up all forms of religion to pray about his claims to look after our national assets.

In Europe, taxes are already past 40% and at 50% onwards, everything there grinds to a halt. You need to look at the pie of expenditure of the people.

 

[ykhuser]

if cpf can be used to buy car, singapore will be in chao

 

[blackmondy]

if cpf can be used to buy car, singapore will be in chao

Then it will be known as Car-Purchase Fund liao.

 

[ykhuser]

Then it will be known as Car-Purchase Fund liao.

i dont know if opposite party promise the voters if they vote them in and form the next goverment,and allows cpf to buy cars, will the voters believe?

 

[PohHeng]

Yes, it a donation fund for temasick gambling capital.

Sinkies are just too weak to stop them.

 

[songsongpunggol]

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

how could this even be possible? this is unrealistic.

 

[ChaoPappyPoodle]

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.

- http://veritas-lux.blogspot.sg/2011/07/inverse-robin-hood-1-how-singapores.html

You must add the enormous payment for public housing where the garment earn supernormal profits from low and middle class Singaporeans. Then you add the interest charges and then you have an effective tax rate of at least 50%.

 

[DuYunQi]

There is ONE thing I can never understand... is the CPF board a self-governing government establishment?

It always seems to me that whenever there are changes in CPF.. it NEVER goes on debate in parliament (pardon me but I don't remember any such.. and pls correct me if I'm wrong).. only that it will BE SO!!

So.. Singapore citizens cannot have anything to say about this CPF at all? I can't find anything in the constitution about this thing.