Friday, February 7, 2014

Be realistic about taxes in Singapore

For those of us who keep complaining about indirect taxes in Singapore (including myself) such as COE, ERP, GST, etc.

Well, that's because everybody wants government to do this and that. The nation wants government to provide housing, transport, education, healthcare, social and welfare programs but all these have to be paid for. If you take out one component, say GST, from their budget, the government will have a budget deficit. I am not making this up. You can check their budget.

One thing the government can get rid of, however, is CPF. I believe people are better managers of their own money.

Regarding taxes, Singaporeans are not the most taxed citizens in the world. The western nations are way worst. Just for the record, I would like a 0% income tax. But that is impossible if you allow government to be involved in providing so many services.

The best solution is to let the free market provide the services I've mentioned: healthcare, transport, education, etc. Then we can get rid of stuff like COE, ERP, GST, etc.

America became a great nation 100 years ago with ZERO income tax. Why? It was because their federal government was not involved in all those services I mentioned above (not even in building highways!). Those services are solved locally. Over the decades, they start to politicise all those services, and this is one of the reasons why they are in a bad shape right now.

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