Sunday, September 6, 2015

Taxing the rich to give to the poor

Mr Tharman Shanmugaratnam is one of the MPs that I respect for his sensibility and logical thinking. There aren't many in the PAP that I know of that's at the same level he's playing at.

This is one of the video that came from the election rally of him explaining the tax system:

Mr Tharman Shanmugaratnam explains about our tax system and how it has benefited our middle income and low income residents in Singapore at the Holland Bukit Timah GRC & Bukit Panjang SMC Rally tonight.Listen to the end about whether GST will be increased in the next 5 years.Video Credits: Toggle.Sg#GE2015 #PAP4SGGet breaking news, live updates, and exclusive content, on the go, please click:

Posted by People's Action Party on Saturday, 5 September 2015

A lot of people have commented that the government should tax the rich more. I feel the same way too but the thing is, the effect return you get from the tax will not significantly increase.

In the video, Tharman explained that the rich are able to move money around. So if you increase the tax, those rich people will just move their money around, reclassify their earnings, or do whatever their tax lawyers advise. At the end, you're not going to get a lot of out of them.

If you don't understand why taxing the rich is not the best solution, then you're probably not in the rich tier. I'm not in the rich tier either, but I do know that, yes, you make money so that they are not taxable.

In the end, it will be the middle income who will end up paying more taxes if more social benefits are to come from the government. Because it's this huge group of people who don't have the financial intelligence to do what the rich do.

1 comment:

  1. He just confirmed how devious the rich are, instead of bringing them to task, he explains it away. The fact remains that Singapore is one of the places where the rich move their money too. That is the single biggest reason why we do not want to impose higher taxes on the rich, and also because we have the world's highest paid politicians who would suffer too.