Why Tax Lower Income and Return to them in form of aid package? - Ngiam Tong Dow

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What ex-head of Civil Service Ngiam Tong Dow said in 2003 interview with Business Times:

We should just concentrate on helping the poorest 5
to 10 per cent of the population, instead of handing out a general
largesse. Forget about asset enhancement, Singapore shares and utility
rebates.
I don't understand the urgency of raising the Goods and Services Tax. Why tax the lower-income, then return it to them in an aid package? It demeans human dignity and creates a growing supplicant class who habitually hold out their palms.

Despite the fact that we say we are not a welfare state, we act like one of
the most 'welfarish' states in the world. We should appeal instead to
people's sense of pride and self-reliance. I think political courage is
needed here. And my instinct is that the Singaporean will respect you for
that.
 
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