Low Tax in SG is but a CRUEL MYTH!

[makapaaa]

[h=2]The author forgot that low tax in SG is a myth if the indirect taxes and fleecing on the average Joe is taken into account. The real beneficiaries are the corrupt and connected individuals who are able to 'manage' and 'massage' their tax obligations!

PM says we pay low taxes but forgot to mention we earn low wages too[/h]

June 11th, 2012 |

Author: Contributions

PM Lee

Read a Straits Times article (Jun 9) about PM Lee explaining why Singapore should not follow the same socially focused policies which have been successful in Sweden and Norway.
Again, the PM brought up the merit-based system Singapore practices and the low tax percentage we have here.
From the article:

“Essentially, it came down to one fundamental choice: Low taxes and targeted welfare benefits – as Singapore has – or high taxes and comprehensive welfare.

‘You can have one or the other, cannot mix and match,’ observed Mr Lee, at a dinner for the Economic Society of Singapore.
Nordic nations, he noted, had natural resources, a rich hinterland in Europe, and long histories as homogeneous societies which were willing to pay high taxes for high social protection.

‘I do not believe that Singaporeans would be willing to pay the taxes that Scandinavians pay, or that our economy could be competitive at such heavy tax rates,’ said Mr Lee.”
​

What I don’t think the government understands, is that Singaporeans are not willing to pay more taxes (for the sake of better social welfare) simply because wages in Singapore are currently too low, and inflation too high.

He says that the Nordic nations can afford such large social expenditures because of the higher taxes citizens pay. BUT he neglects to mention that the citizens in those countries also earn wages much higher than Singaporeans.

The minimum living wage in Singapore for blue collar workers is simply too low for tax to be any higher. And the very rich continue to get richer with extremely high pay and very low taxes!

According to Singapore’s Gini coefficient, we have one of the most unequal income distributions in the world. That and Singapore is also the 8th most expensive cities to live in in the world (http://www.mercer.com/press-releases/1311145).

All this means that our attempts at keeping taxes low are also coupled with measures that keep low-end wages low as inflation rises uncontrollably and living becomes more and more impossible for the average citizen.

How can Singaporeans be happy when most of us are earning a decreasing living wage??? At the same time, are we keeping taxes low to keep the average Singaporean happy, or simply just to appease the very rich minority responsible for most of our GDP?

I think we should stop looking at the “differences” between us and the Nordic nations and stop excusing ourselves from adapting their system.
Isn’t it time we evaluate what is wrong with the way we work that makes it so difficult for us to achieve the same balance and success the Nordic countries have?
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VOTEUOUT

 

[palden]

Who say low tax? Low tax doesn't mean no tax. Our masters should increase Gst to 100% to teach these infidels a lesson on taxes.

 

[Kinana]

Taxes are very low in singapore compared to other countries.

 

[halsey02]

In SINgapore, you smoke you get tax, you drive you get tax, you don't drive you get indirectly taxed, you get sick, you get tax, you eat you get tax directly & indirectly...

You wake up open your eyes, you consume electricity & water, you get taxed...we sure have the lowest tax rate in the world, but they forgot to tell you, that at the rate you are being taxed, added up..how low can it get?

 

[Cruxx]

Nominal tax rate has always been a non-issue. What matters is tax incidence: who the burden of tax falls on.

 

[laksaboy]

This is the biggest tax in Singapore.

Don't be fooled. It's not an investment, it's not a pension.
It's just some digits linked to your name.
It's a Ponzi sinkhole.

 

[Orion]

There is a honest way to calculate taxes in the olden days as indicated on various history books.

For example, in the UK, they would talk about how much is left in a year after they worked. For example, 3 pennies are saved. In China, taxation often means how often what left at the end of the year harvest as well. If negative, they are forced to borrow or sell their lands. That is real tax.

The % of money that everyone could save is the actual taxes, representing standard of living.

 

[wMulew]

Taxes are very low in singapore compared to other countries.

Don't bother, those frogs in the well doesn't realize how low the taxes are in SG. They just assume they are worse off