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5/14/2006

taxing the poor efficiently

Income tax dept should rethink unequal tax cut policy to narrow divide between rich and poor I am an income tax payer. Income tax dept should rethink unequal tax cut policy to narrow divide between rich and poor. However, I am pleasantly surprised to discover that my income tax burden is reduced for assessment year 2006. I gather this information from the IRAS website: Singaporean, individual, salaried earner, top income tax contributors will pay 1% less tax while medium income earner will pay 0.5% less tax compared to last year. But low income earners get no benefit. I would like the IRAS to reconsider unequal income tax reduction. I propose that the system of income tax in 2003 be reinstated with reduction in Goods and Services Tax by at least 3 percentage points. My arguments are simple. Firstly, our system taxes us in an inverted pyramid form, ie. the more I earn, the heavier my tax burden. I find this sensible, reasonable and logical. Secondly, GST is non-discriminatory and it effectively taxes our fellow lower income Singaporeans. In my opinion, this has contributed to the rich and poor divide. Not too low income earners like me should not complain about paying taxes as it is our duty as Singaporeans to contribute and move together forward as a nation. No man gets left behind in my Singapore. Ng Swee Kai The writer's article was published in the Sunday Times forum page. I fully agree with his suggestion. The GST is unjust to the poor through its reasoning that everyone must pay tax, rich or poor. Only rich people will support such a taxation policy where the poor, including the very poor, have to pay tax. Thus the rich gets richer and the poor gets poorer.

2 comments:

Anonymous said...

In my humble opinion, the rich gets richer and the poor gets poorer because companies nowadays pays employees meagre wages, and when times are good, they will not increase wages or give out bonuses. Instead they will say that the profits need to be kept to be utilized in bad times.And then wat happens? These higher management people gets their pay rises and astronomical bonuses. When times are bad, who do they retrench first? Not the upper management. It's the poor lowly workers at the bottom of the ladder.

redbean said...

this is one of the reasons why i have created two threads to keep a watch on how things are being done and why the poor workers are always at the wrong end of the stick.