GST theory

[Picanto]

the rich spend more. the poor spend lesser.

since the rich spend more, they pay more in gst than the poor. then the govt will use $$ collected from gst to help the poor. that's the theory the govt gave.

 

i dun quite agree nor understand it well. a simple solution is to reduce the gst to 5%. then we do not need to use gst $$ to help the poor. right? or am i missing something?

 

 

 

[Dafansu]

just to add on, this was mentioned and discussed during the budget debate last week by Shanmugam, the reason was given in his speech. No matter how much we reduce the gst, even to 0%, the needy and poor still need help. No way a reduction in gst means the govt no longer need to help them. A simple gst collected from sales of luxury goods can amount to a lot of money which in turn will help the needy more significantly . by reducing the gst we are only helping the rich to get richer

[Dafansu]

you can read this

 

http://www.tax-news.com/news/Singapore_Wil...e_GST48084.html

[Tonyng]

 

Depends on what you mean by the poor.

 

The very poor has assistance plans. The rich does not mind because they can afford it.

 

So the middle class is hit because you get pinched in buying daily necessities and need to think twice for any luxury item purchase.

 

So you will benefit if you become poor as a result and can apply for financial help. Would you?

[Friendstar]

the rich spend more. the poor spend lesser.

since the rich spend more, they pay more in gst than the poor. then the govt will use $$ collected from gst to help the poor. that's the theory the govt gave.

 

i dun quite agree nor understand it well. a simple solution is to reduce the gst to 5%. then we do not need to use gst $$ to help the poor. right? or am i missing something?

 

 

Obviously u don't read the papers.

 

I do agree with tharman on this.

 

But that's if and only if the gst collected is genuinely used to help the poor

[Darthrevan]

i dun quite agree nor understand it well. a simple solution is to reduce the gst to 5%. then we do not need to use gst $ to help the poor. right? or am i missing something?

 

if u have done volunteering work for those needy and destitutes..u will have seen that there are those who really need assistance. so are u against helping these group of pple?

 

 

[Friendstar]

the rich spend more. the poor spend lesser.

since the rich spend more, they pay more in gst than the poor. then the govt will use $$ collected from gst to help the poor. that's the theory the govt gave.

 

i dun quite agree nor understand it well. a simple solution is to reduce the gst to 5%. then we do not need to use gst $$ to help the poor. right? or am i missing something?

 

 

Obviously u don't read the papers.

 

I do agree with tharman on this.

 

But that's if and only if the gst collected is genuinely used to help the poor

[Picanto]

Obviously u don't read the papers.

 

I do agree with tharman on this.

 

But that's if and only if the gst collected is genuinely used to help the poor

 

 

but the thing is that these help for the poor comes with lots of terms and conditions

[Jman888]

but the thing is that these help for the poor comes with lots of terms and conditions

 

 

if you very very poor and dun see any help then you complaint ok, we will see what we can do to help...

 

but end of the world coming [bigcry] rich or poor all end up the same [bigcry]

[Ichibawa]

I would be interested to see what are the implementations and the activities done to help the poor with the amount collected.

[Wt_know]

gov reduce personal tax in order to "attract" professional and talent especially high income earner to come to work singapore --> more high networth individual

gov reduce other taxes to make sg more competitive especially to fight for business with other countries

so, 1 side reduce tax. another side must recoup the money. GST comes in.

GST is broad base and not "targeted" to rich, middle or poor. However, the rich don't bother GST but the poor and middle class will kena jialat because a huge percentage of the disposable monthly income aka expenses are for necessities including food, utility bills, childcare, medical, etc

 

imagine

 

a. monthly income $20k, spend $10k, GST = $700 = 3.5% of income

b. monthly income $5k, spend $3k, GST = $210 = 4.2% of income

c. monthly income $1.5K, spend $900 (min level to survive), GST = $63 = 4.2%

 

so, who feel the pinch more ? the rich, middle or poor

Edited March 15, 2011 by Wt_know

[Dafansu]

I would be interested to see what are the implementations and the activities done to help the poor with the amount collected.

 

read the budget statements there's a full list for you to see http://www.singaporebudget.gov.sg/budget_2...amilies.html#s1

 

this is part of it only, if you follow the budget debate you will know more.

Edited March 15, 2011 by Dafansu

[JaydenSTI]

gov reduce personal tax in order to "attract" professional and talent especially high income earner to come to work singapore --> more high networth individual

gov reduce other taxes to make sg more competitive especially to fight for business with other countries

so, 1 side reduce tax. another side must recoup the money. GST comes in.

GST is broad base and not "targeted" to rich, middle or poor. However, the rich don't bother GST but the poor and middle class will kena jialat because a huge percentage of the disposable monthly income is for necessities including childcare, medical, etc

 

imagine

 

a. monthly income $20k, spend $10k, GST = $700 = 0.028% of income

b. monthly income $5k, spend $3k, GST = $210 = 0.042% of income

c. monthly income $1.5K, spend $900 (min level to survive), GST = $63 = 0.042%

 

so, who feel the pinch more ? the rich, middle or poor

 

bro, need to times 100 on your percentage.......

 

point something percent is really peanut to anyone........ rmb your 0.125% saving interest rate???

[Dafansu]

but the thing is that these help for the poor comes with lots of terms and conditions

 

terms and conditions so that the right person receive the correct amount and not any tom dick benefit from it.

[Voodooman]

GST is in general regressive. Compared to the rich, the poor pays more GST as a percentage of their income. So how can GST be good for the poor?

 

Why can't they tax the rich more via income/property/inheritance/luxury taxes, etc. and continue to distribute those largesse to the poor, why must we use GST to facilitate this redistribution?

 

Simple, you can't tax the rich too much as they are very mobile and they are welcome everywhere. Fact is, the richer you are, the less tax you want to pay. So who gets screwed? The middle class and the poor, the very poor probably benefits based on that logic.

[Tom_kkh]

are there any reports on how much GST were collected in a year and how it was distributed?

[Alim]

are there any reports on how much GST were collected in a year and how it was distributed?

 

$7.9 Billion collected in 2010.

$3.2 Billion given in "Grow & Share Package"

Total Benefits Package: $6.6 Billion

 

Singapore Budget - Estd Receipts

 

Singapore Budget 2011

Edited March 15, 2011 by Alim

[Hoppie24]

Obviously u don't read the papers.

 

I do agree with tharman on this.

 

But that's if and only if the gst collected is genuinely used to help the poor

 

Hmmm...........where do you think the 30% increase in paycheque comes from? Not pluck from the air right? It must be from somewhere out there right?