Friday, February 09, 2007

I almost fall off my chair when I read the headline on Straits Times.

'GST hike: How it will benefit the poor'

I would think its illogical even if its written as 'How it will not affect the poor'

Benefit? Come on.

" 'So why is the Government doing it?' Minister Tharman asked. The main reason: to help lower-income Singaporeans, and to do so systematically for the long term."

Why not just be frank? I will say "Because we want to lower the corporate tax to attract investments. Attract investments to create jobs. Create jobs for foreign talents so the economy can grow."

Are we living in a nation or a MNC?


chris said...

increasing indirect taxes and decreasing direct taxes (or they claim they will do) do decreases the burdens on working adults, be it the rich or poor, thereby reducing the income gap. That's true in the LT wat. and more jobs for foreign talent also means more jobs for locals too no? its a win-win situation to me leh... anyway, just my 5cents.. hehe

ek said...

I think it boils down to how many percent of the 7% is helping the poor. Reducing coporate tax is a must because of globalisation and the fact that Singapore is small to have a decent domestic market. As the world is more fluid, we have no choice but the listen to the bidding of how the world move. Lowering coporate tax hopefully will bring in companies that will create more job for local and foreign talent alike. But of course i still feel to get out of the povety trap is to have education. I rather govt don't give directly too much to the poor but to subsidise their children in education and hopefully those child will do well enough.


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