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2/18/2012

Inclusive budget for everyone

At least 2 families are happy with the budget. Yazit, the general worker with a family income of $800 pm will receive $250 GST cash voucher and $260 utility rebates. He is happy that he could now give his primary one son a bit more as pocket money.

Gina Loo, a part time administrative assistant earning $500 pm, also a sole breadwinner, with a daughter and parents to look after, will get $250 for each adult and a $260 utility rebate. Incidentally, Yazit’s wife is not a citizen and will not receive the GST voucher.

Both families are happy with every dollar they received. It is amazing how they coped with the kind of cost of living in our world class city. But they are managing and can still put on a warm smile for the reporters. Their stories are in the ST today.

The GST voucher is to help the lower income families offset the GST that they have been made to pay as the GST knife is pretty blunt, and does not care if one is a multi millionaire or with a few hundred bucks as household income. The examples given in the ST, a retiree couple will receive enough, $1,240 to offset an estimated GST of $840, with some to spare. A ‘younger lower income households with no elderly members…will also receive a significant GST offset…It should cover about half of the total GST they pay each year.’ This means that they will have to pay the other half of the GST tax despite the significant offset.

Some jokers are still arguing angrily that the poor are not taxed. This is a good example of the unpleasant truth. How could a rich country, with so much in reserves, tax on the very poor? And best, claiming that the GST is to help them.

Well, at least the very poor are still happy that the $250 cash voucher will better their lifestyle for a few months, until the next budget comes.

28 comments:

A Fan said...

How to claim the $250 GST voucher huh? I spent more than $250 per year on GST and my monthly pay is $900 and some more got to raise 4 kids, support one wife and one old mother.

My life is a daily struggle.

I am thinking of busking at some busy MRT station. Have to get licence or not huh?

Thanks in advance Uncle Chua for any advice.

Chua Chin Leng aka redbean said...

Hi A Fan, welcome to the blog. $900 and 4 kids and old mother is sure tough.

They will have a convenient way of delivering the voucher. Don't worry. Like Agongkia, got to work harder, taking a second job or busking can be a way too. Yes busking needs license. Just walk into any police post and they should be able to advise you.

Should try the MP first for some public assistance.

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agongkia said...

Mr Bean 's blog is always interesting, thought provoking and worth reading.
But Mr Bean,advising your reader to walk into any police post for such enquiry is not productive lah.
Police dun issue that license and police post are not open 24 hours.
Give a call will do and save the time for something useful.
To me,earning less has its advantages too.Spent few hour working and earn less but have more time to spent with family and love one and make babies.This is something money cannot buy.
We must learn from people like Yazid,though pay little,can have 3 kids,big toy and a happy family.
He never complain but any help is appreciated.I believe this is the picture ST is telling but you guys think differently .
Be happy.

Anonymous said...

$250 GST voucher.

A typical Party Against People type of "solution".

They give us a Panadol to "cure" the brain tumour they created.

Don't be fooled.
The only cure for our brain tumour is to vote in more Opposition MPs in GE 2016.

Anonymous said...

MIWs giving $....oh dear, more price hike in store

Gintai_昇泰 said...

It's a fact that GST will hit the poor. The rich will not feel it. Everything including the basic essential items will be taxed! This will hit the pockets of the poor!

Matilah_Singapura said...

The poor are taxed -- GST. Everyone pays the GST, there is no escape...unless you do cash, one-on-one deals; for e.g. if you buy a blow-job at a karaoke. However the rest of your expenses at the karaoke are taxed.

No escape lah.

$250 in GST equates to around $3600 in expenses. So the $250 rebate although helpful, no big "handout". I'm not surprised -- governments don't like giving up too much of their tax revenue -- for whatever reason.

Therefore if you are low income or poor, you will still be paying tax. And you should. everyone should pay some tax in Singapore.

All tax-free breaks for all religions should be abolished.

Matilah_Singapura said...

I just went thru the 2012 Budget.

This budget is more "socialist" than previous ones. Lots of "assistance" and hand outs.

I thought the S'pore govt was against welfarism. Budget 2012 has plenty of welfare.

Labour costs to Singapore-based enterprises will rise, some enterprises might even move to Johor.

Overall verdict: Not bad lah. 2012-2014 is going to be tough. This budget has plenty of "assistance" in it to keep people -- citizens and businesses -- from going under.

Matilah_Singapura said...

What entrepreneurs should know about Singapore Budget 2012

...not bad, but if you are a start-up or new enterprise, it'll be tough due to possibly increased labour costs.

Chua Chin Leng aka redbean said...

Just a few points. I think MICA is issuing the busking licence.

The biggest revenue that the govt has given up is estate duties. With properties prices in tens or hundreds of thousands, this is a big piece of morsel that the govt is giving away to the very rich.

The govt is still so stubborn in not removing GST from essential items or medicine and healthcare.

Matilah_Singapura said...

IMO estate duties are the most immoral of all taxes -- taxing the dead.

Some people choose to work all their lives to accumulate great wealth. These are the true "saviours" of human civilization. Without these people you (and I) won't have jobs or the materialism (aka "stuff") so important to modern life. We don't live in the jungle, we live in completely constructed modern civilizations -- everything from our homes to our food is "made" by processes initiated by ENTREPRENEURS. Without them, we all die.

Passing on wealth to the next generation is a way of preserving (??) wealth in a family. Look after your own, so the government doesn't have to "look after" you. The government has no business raiding the wealth of families..

However, natural justice will always prevail. Those off spring who are rational end up keeping and growing the wealth bequeathed to them. Those who are irrational will blow the whole lot...we see examples of both types all the time.

Matilah_Singapura said...

@redbean

>> The govt is still so stubborn in not removing GST from essential items or medicine and healthcare.
<


The "essential" argument is invalid. What you say is "essential" to me might be a frivolous.

The wider the tax base, the lower the tax. IMO a 3% GST was "fair". Now 7%, that's an increase of 133%!!. However the argument is that the govt reduced the income tax and the corporate tax...now the lowest in the world next to Hong Kong -- which is reforming to be more like Singapore.

Frankly, I think that healthcare should be treated as a "luxury", which means it is valuable on a personal level and therefore people should be encouraged to "save" for their healthcare or take out insurance.

It is not the state's business to provide healthcare. and when it does, everyone thinks it is an "entitlement", and the whole thing becomes a mess.

Anonymous said...

Hard to reason with folks that are too rational.

Chua Chin Leng aka redbean said...

Matilah, can you please wipe that photo of yours.

Matilah_Singapura said...

Sure. Consider it done.

May I ask why? Did someone complain?

Chua Chin Leng aka redbean said...

No one complain. Just find that the smear on your face is a bit messy: )

Anonymous said...

People here can't take the hard truths.

Matilah_Singapura said...

redbean, messy faces are result of fun activities ;-)

...like football...

Chua Chin Leng aka redbean said...

I thought you were in the farm trying to milk a bull.

Matilah_Singapura said...

Please lah. I'm not a blur-cock Singaporean who has never even seen a farm.

I ride horses and shoot guns lah. I'm celebrating my 3rd decade in a tough, outback, swa-ku cuntree, and I assure you I can tell a bull's equipment from a cow's multi-tetek ;-)

Chua Chin Leng aka redbean said...

Now that's good for you. Just don't hurt the cow please.

Matilah_Singapura said...

enjoy your milk!

Anonymous said...

Robber to peasant: Give me all your money.
Peasant after giving $1000 to robber: Now I very poor. No money.
Robber: Here, $1 rebate specially for you.
Peasant: kowtou 3 times. Thank you very much. Please be the village chief. I vote for you.

Anonymous said...

Redbean,
Isn't it strange that MIW insist that they must be paid millions to have a decent lifestyle but yet paid a miserable $250 voucher (which I believe to be one-time off thingy until the next election is near) to lesser mortals for living ?

Anonymous said...

well, at least he gave u back $1. He could have killed and/or raped you too.

Chua Chin Leng aka redbean said...

Different classes of people have different quality of life and need different amount of money to feel good. They have different types of dignity as well.

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