- Joined
- May 22, 2011
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I knew that the title will cause a bit of a shock but let me explain. A welfare country is characterised by high income tax and a Government to which the people look to for their needs. A non-welfare country, like Singapore, is characterised by low income tax and where the people look after their own needs.
In Singapore, taxes are extremely low but have you considered that the CPF is actually a form of income tax. If we add this percentage to the usual income tax, then Singaporeans are indeed paying very high income tax. The CPF has all the characteristics of an income tax in the sense that it is compulsorily deducted from the salary and WITHELD by the Government. With the increasing minimun sum and the compulsory CPF-Life, Singaporeans will not be able to draw out quite a large chunk of their so-called savings.
In the meantime, the Government uses the CPF for housing, medical and pension for the people. IS'NT THIS WHAT A GOVERNMENT IN A WELFARE COUNTRY PROVIDES IT'S PEOPLE.
However, there is one main difference - Singaporeans do not get unemployment benefits which means that when they lose their jobs, they have to fend for themselves. Also, the benefits have all a cap and once this is reached they have to fend for themselves. Thus Singaporeans, have one of the worst welfare conditions.
What is important is the DISPOSAL INCOME availble and what this income can buy. I am somewhat amused that a couple earning over $ 10,000 per month has to ask the Government to make them eligible for PUBLIC housing. In most countries, couples earning this amount have a comfortable 3-bedroom HOUSE to live in.
In Singapore, taxes are extremely low but have you considered that the CPF is actually a form of income tax. If we add this percentage to the usual income tax, then Singaporeans are indeed paying very high income tax. The CPF has all the characteristics of an income tax in the sense that it is compulsorily deducted from the salary and WITHELD by the Government. With the increasing minimun sum and the compulsory CPF-Life, Singaporeans will not be able to draw out quite a large chunk of their so-called savings.
In the meantime, the Government uses the CPF for housing, medical and pension for the people. IS'NT THIS WHAT A GOVERNMENT IN A WELFARE COUNTRY PROVIDES IT'S PEOPLE.
However, there is one main difference - Singaporeans do not get unemployment benefits which means that when they lose their jobs, they have to fend for themselves. Also, the benefits have all a cap and once this is reached they have to fend for themselves. Thus Singaporeans, have one of the worst welfare conditions.
What is important is the DISPOSAL INCOME availble and what this income can buy. I am somewhat amused that a couple earning over $ 10,000 per month has to ask the Government to make them eligible for PUBLIC housing. In most countries, couples earning this amount have a comfortable 3-bedroom HOUSE to live in.
