GST up 2% . only ? What is your effective increase ?

[Sotong_kia]

So maybe you should figure and see which category you belong to ?

 

Read this somewhere.

 

QUOTE

Example 1

In 2006, if after rebates etc, your net taxable income is $60,000, the income tax you need to pay is $2,700 ( 8.75%). If you spend $800 a month on needed goods and services, the GST paid for 5% will be $480. Total=$3,180 in Tax paid.

 

In 2007, if after rebates etc, your net taxable income is $60,000, the income tax you need to pay is $2,600 ( 8.50%). If you spend $800 a month on needed goods and services, the GST paid for 7% will be $672 Total=$3,272 in Tax paid.

 

From $3,180 to $3,272, the effective increase is 2.89%.

 

 

Example 2

In 2006, if after rebates etc, your net taxable income is $400,000, the income tax you need to pay is $61,650 (21%). If you spend $4,000 a month on needed goods and services, the GST paid for 5% will be $2,400 Total=$64,050 in Tax paid.

 

In 2007, if after rebates etc, your net taxable income is $400,000, the income tax you need to pay is $58,700 (20%). If you spend $4,000 a month on needed goods and services, the GST paid for 7% will be $3,360 Total=$62,060 in Tax paid.

 

From $64,050 to $62,060, the effective increase is -3.11%.

 

 

Example 3

In 2006, if after rebates etc, your net taxable income is $25,000, the income tax you need to pay is $187.50 ( 3.75%). If you spend $800 a month on needed goods and services, the GST paid for 5% will be $480 Total=$667.50 in Tax paid.

 

In 2007, if after rebates etc, your net taxable income is $25,000, the income tax you need to pay is $175 ( 3.5%). If you spend $800 a month on needed goods and services, the GST paid for 7% will be $672. Total=$847 in Tax paid.

 

From $667.50 to $847, the effective increase is 26.89%.

 

The fact is: The poorer you are, the more GST is going to make you poorer

UNQUOTE

[Sotong_kia]

Sorry mods, can move this to Lite & Easy ? Was reading the Road Tax rebate thing and just posted.. Forgot wrong area...

[Rtth84]

this is the fact of a capitalistic society.

 

crime rates go up because the gap between the top and bottom opens up even more.

 

wealth not equal happiness

BUT

lack of wealth is unhappiness

[Dtvox]

GST is a regressive tax no matter how you look at it.

 

Singapore is a tax haven and to be considered that, the rich will want to come here. So part and parcel of a booming economy.

 

If we look at other countries with high GST or VAT, they also have a progressive income tax system in place.

 

Therefore its really great to be rich here...

 

[Rtth84]

Singapore is not a tax haven

 

how can a tax haven have 20% income tax?

 

http://en.wikipedia.org/wiki/Tax_haven

Edited July 6, 2007 by Rtth84

[Dtvox]

With 20% for corporate and highest bracket for personal income tax, still not considered tax haven. Hong Kong is considered as a tax haven and after the provision for deduction, we are not pay more taxes than them.

 

Furthermore, in Hong Kong you will have to pay your taxes at one go. If want installment, can, borrow and pay interest. Here we have interest free giro. How nice.

[Comfy]

it somehow effectively increased my blood pressure as well

[Yeshe]

i dun care about the 2% increase, i only know now the kopi-O, teh-O, kopi, teh, teh-C, etc all up by 10c = 10-15% increase

[Shull]

GST is a regressive tax no matter how you look at it.

 

Singapore is a tax haven and to be considered that, the rich will want to come here. So part and parcel of a booming economy.

 

If we look at other countries with high GST or VAT, they also have a progressive income tax system in place.

 

Therefore its really great to be rich here...

 

 

correction: It's GREAT to be RICH EVERYWHERE..

[EventH]

I think your assumption of $4k in Example 2 is flawed.

$4000k on needed Goods and services for for someone that net excess of $33,000 monthly is way too little.

 

What that is considered luxury to Example 1 or Example 3 could be the norm for need for someone in Example 2. In addition, we are also not talking about the big ticket expenditure items, like housing, cars, travel, luxury "TOYS".... If you want to play, you have got to pay.

[Sotong_kia]

Yeah, maybe , maybe not..

 

Those that I know who are earning that kind of money, very ngiao.. everything also claim company, cos they can.

Only buy car, buy house is their own.. go restaurant eat also claim..

 

But then, not me, but the author also "underestimate" the poor who spend only $800...

(Article is taken from net... I do not plagerize.. hee hee)

 

 

Why ? Take a look at this :

http://www.singstat.gov.sg/pdtsvc/pubn/softcopy/hes2003.pdf

 

Page 100 ,

 

Lowest 20% Household Expenses : $1,454,70

2nd Quartile Household Expenses : $2,364.60

3rd Quartile Household Expenses : $3,171.90

4th Quartile (Top 25%) Household Expenses : $4,326.80

Top 20% Household Expenses : $7,100.90

 

Page 123, Table 25 however shows the household income :

 

Lowest 20% (I wonder why 1st Quartile was not there) Household Income : $795

2nd Quartile Household Income : $2,059

3rd Quartile Household Income : $3,379

4th Quartile Household Income : $5,309

Top 20% Household Income : $12,792

 

Notice that Bottom half of Singapore households actually spend more than they earn ?

 

Anyway, I guess example 2 might be there to show how the rich get richer.. I mean, who cannot live with spending $4,000 per month ? If wanna buy branded and stuff, then is their own business.

 

But I gues you can do your own calculations and see how the rich save more via income tax..

Edited July 7, 2007 by Sotong_kia

[Freestylers09]

GST up 2%,retailers file GST one nvm..they can claim back..but knn prices increase more than 2%...consumers absorb..

[EventH]

Those that I know who are earning that kind of money, very ngiao..

 

very true .. indeed there are people like that.

Hopefully if we work hard and smart, we might one day be in that position.