Monday, December 21, 2009 11:49
Tilting the playing field in favour of lower income group?
In Andrew Loh, Main Stories, Top Story, Uncle Leong, Uniquely Spore • 2,678 views • 66 Comments
Leong Sze Hian
Six months after the last general elections in 2006, Prime Minister Lee Hsien Loong dropped a bombshell on Singaporeans. In November of that year, PM Lee announced in Parliament that the Goods and Services Tax (GST) will be increased from 5 per cent to 7 per cent. He explained the rationale for the 2 per cent increase thus:
“It will give us precious extra resources to implement social programmes like Workfare later on. Our aim is to help the lower income groups and the elderly, not to increase their burdens…. It is a whole set of measures which we are taking in order to tilt the playing field in favour of the lower income group, which is what we have to add and tally in the balance, and my purpose is to help the lower income group. For the middle income, it will be generally about ok; for the higher income, I think the higher income should end up paying more overall. (Source)
The GST hike was eventually implemented in 2007.
In his Budget Speech the following year (2008), Finance Minister Tharman Shanmugaratnam revealed that the GST collected in 2007 had “exceeded our projection by about $1.2 billion, mostly from higher consumption.” http://www.mof.gov.sg/budget_2008/speech_p1/p1.html
It’s been three years since PM Lee’s bombshell and Singapore has gone through what is arguably its worse recession. Thus, it may be an opportune time to ask how exactly have the poor been helped with the increase in the GST.
Can we have an accounting of how exactly the estimated $1.9 billion extra from the two per cent GST increase has been used to help the poor?
How much more exactly has the increase in GST raised?
Are the poor better off after getting the extra help from the GST increase?
Since we don’t have detailed answers to the questions, we can only speculate, using statistical indicators available in the public sphere.
Comcare
The core scheme to help the poor, is ComCare.
In a Channel Newsasia report in August 2009, the Comcare fund, which now stands at $800 million, will eventually be topped up to $1 billion.
Comcare spending this year is projected to increase by 37 per cent from 2008, to $77 million. As of end-June 2009, some 27,000 were receiving help from nationwide Comcare schemes.
Comcare has helped over 85,600 cases since its inception in 2005.
Does the above mean that there are only about 27,000 poor families receiving financial assistance, and that 58,600 (85,600 minus 27,000) cases that were helped no longer need assistance?
According to government figures, there are 105,965 and 116,092 households with monthly income below $1,000 and $1,000 – $1,999 respectively (Department of Statistics’ Household Expenditure Survey Report 2009). The Ministry of Manpower said recently that the seasonally adjusted figure for unemployed residents was 100,300 in September. The question is: In light of the above data, how is it possible that there are only 27,000 families that need financial assistance in the midst of Singapore’s worse recession?
Public Assistance
The number of people on the Public Assistance scheme has remained at about 3,000. About 50 per cent of new applications was rejected last year. The monthly allowance for those on the PA scheme has been increased by just $30, from $330 to $360.
Post-GST increase, how much of the Progress Package represents an increase to help the poor, that is on top of the amounts given in the past before the GST increase?
We should also note that the GST Offset Package may only help the poor to offset the GST increase, and thus may not represent more help for the poor arising from the reason given for the GST increase.
Medifund
According to the article, “More Medifund assistance” (ST, Feb 9, 2009), Medifund assistance will be raised by only 10 per cent to $80 million, and Medifund and Eldercare Fund will be topped up by $100 million each.
It should be pointed out that topping up the Comcare, Medifund, Eldercare Fund, etc, is not actually money being spent. The budget for these are instead set aside as endowments. That is, these funds will invest the monies and may only use the interest from these funds to help the needy.
The effective measure of help for the poor should be the actual sums spent every year, relative to the extra sum collected from the GST increase.
MOE, Workfare
The Ministry of Education’s (MOE) budget for the MOE Financial Assistance Scheme (MOE FAS) will increase by an estimated $7.3 million, from $10.7 million in 2008 to $18 million in 2009 (Source : MOE press release, February 10, 2009).
The Workfare Income Supplement (WIS) for Older Workers was increased, and will cost the Government an additional $83 million a year bringing the total WIS budget to $432 million.
Since the Workfare Bonus scheme started in 2006, before the GST increase, the question that needs to be asked is how much of the GST increase has gone to the increase in workfare, on top of the sum before the GST increase?
In 2008, after the GST was increased, the government saw a budget surplus of $6.4 billion. It thus begs the question of whether there was a need to increase GST in the first place.
Finally. we would like to suggest that an accounting be given every year, as to how exactly the extra money from the GST increase has been used to help the poor, and re-visit the following seven questions:
- How many poor people are there?
- How many poor people will be helped?
- What is the definition of being poor?
- Will more poor people receive help?
- How much more help will the poor get?
- How exactly will the poor be helped?
- How much more will the increase in GST collect?
In so doing, it may facilitate all stakeholders in their analysis and review of policies, to ascertain the effectiveness of the basic premise of raising the GST “to help the poor”, as PM Lee said.
*Additional contribution by Andrew Loh.
*Picture from Straits Times.
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66 Comments
Citizen Soldier
rubbish in rubbish out
GST HELPED the poor…
ERP HELPED traffic congestion…
$10 million HELPED new citizens integrate…
COE helped control car population…
Each time the gahment help…more $$$ need to fork out and tax to be paid…
We could do with a little less help from the gahment.
amisingaporen
Looking back, we see that the poor actually do not get any
additional help at all. In fact I think they have been worse off
that before the GST increase.
The real reason, and the actual agenda of the 2% GST raise
is to make up for the shortfall in revenue due to cut in Corporate
tax, income tax for people in high earning brackets and the abolished
estate duty (which group of people actually pay estate duty?)
Its actually the rich that have been helped.
Its just political suicidal to say so , not that the PAP can’t get away
with anything it wants to implement despite the people’s displeasure
Is it any wonder why politicians are always rank near the bottom
of the most trustworthy professions?
iamlieshamewrong
what do our prince the prime minister realLEE know?
beside rai$in the revenue$ and taxe$ for his famiLLEE?
every $$$ we earned…leeh$iehloong want$ 33% regardle$$ on your present situation…
his $i$ter want you to get married give birth @ her kk ho$pital
hi$ father demand that either you get married or he gonna import more foreign bride$ to YOU as a favour..nevermind the lossin of your hdb flat by 50% rulin$…
afterall laulee don’t lived in hdb flat @ all….
anakin
Citizen Soldier
You do not know the difference between doing your duty to serve and talent mah. Doing your duty= NS = cheap labour. Talents needed for defence= market rate pay coz they can get better pay in private sector. Understand Soldier! Now you can carry on and do area cleaning.
Bhavan Jaipragas
This is a good article. I would like to see more in-depth policy critique on TOC.
Steve Wu
Sze Hian, thanks for another insightful article. It should make clear the true cost of the PAP government is not just the multi-million dollar salaries of the ministers or the extravagant pay scale of the senior echelon of the civil service. But the multiple poor policies, bad policies and failed policies which cost billions with little to show for .
APAPA
Really?!
Then they should increase the GST to 10%, 20% or even 30% in order to help the poor even more.
aiyoyo
aiyoyo
world economy not so good liao,
talk about $ legs jelly jelly,
think need more $ to survive instead of gst..
aiyoyo
David
I do not see the poor getting help after the 2% GST hike. What we did witness is the immediate effect of ministers helping themselves with salaries increment. If we add up all these increments, it can amount to substantial portion of total extra GST collected. Expect further bombshell from PAP after the coming election. It is time to start bombing the betrayers from now until they get our message.
FaceTheFact
There are many countries does not impose GST or VAT on medical, basic necessity, education etc and with welfare to the needy. While in Sg, everyone include infants and jobless are paying tax without welfare.
Mr Leong Sze Hian should be MP
Mr Leong Sze Hian should be MP, he can then raise these questions in parliament.
with his harvard qualifications and his insightful thoughts,i am sure he is well qualified.
please, mr leong,for the sake of the country, contest in the coming election!
i will support you
pric
Add a few more questions:
1) How much do the ministers (especially the MM, SMs, PM, DPMs) donate to charity each year?
2) Which the charities are supported?
ErniesUrn
The moment they raised the GST to 7%, more more aunties and uncles find themselves digging into trash cans and collecting cardboard boxes.
AO
We elected them into parliament.
We gave them the mandate to govern us the way they see fit.
We gave them the authority to pay themselves higher than high salaries.
We handed them the control to tax and charge us for every little thing.
We gave them the powers to do execute policies without being accountable to us.
It is us.
We did this.
To ourselves.
Never vote pap
If we give them some more mandate during next election, GST will shoot up further more, and all living expenses will follow up also, whenever after PAP win the general election, they will increase whatever they can. this is what they did for the past few election
Anonymous
#5 Anakin,
If SAF regulars really love the country, they will continue to serve the country even if their pay is cut. Real talents are those who continue to serve the country even without being pay. The real talents in the SAF are NSmen and NSFs who love the country even though they are not being paid! SAF regulars are mere mercenaries, who only serve money. You know what? When I went for ICT this year, 1 senior major told me that it is good that the retirement age of regulars increase to 50, so that he do not have to serve NS after he retired! What a shame on the SAF regulars! If a professional soldier do not want to serve NS, how can they Lead By Example! The SAF regulars should take a pay cut to show the civilians that they love Singapore and is sacrifice for the citizens by taking a pay cut, so that the government can reduce defence spending and GST!
wakeupearly
Can someone clarify whether PRs are entitled to any of the above assistance. I remembered reading in ST about the case of a PRC woman who was had PR status but had financial difficulty paying up kindy fees at one of those PAP run centers. Not sure whether kid was Spore citizen & there was no mention of a husband either.Then she recounted that she got some form of assistance, cannot remember what it is but it was some govt run scheme.
If PRs are given financial assistance, it begs the question of why?
Yang
If PAP win in the next election. They will raise the GST to 10%. I guarantee that. That is the aim of the PAP government. Remember, PAP stand for PAY and PAY.
Let’s see how many of you continue to vote for PAP. I totaly agree to (15) AO comment.
Carol
Don’t buy lor.
Buy essentials lor.
Schools must have, transport system must have, polyclinics must have, public servants must have, flats must have, water must have . . . . . .
Who pays? Santa Claus?
Taxation lor.
Hey Singapore got no oil, mineral resources, no plantations, etc., leh. Just the PAP leading 4.5 million people lor for the pst 45 years.
Use brans lor.
I was on holiday in Turkey sipping coffee with the Turkish tour guide who speaks immaculate English. He’s back having been “driven” back from Germany due unemployment there. He was asking what his chances were for employment if he came to Singapore (which he heard so much abt).
He had no good word for his government whom he labelled as corrupt. Unemployment is equally bad. GST is double digit; personal taxes high (claims he doesn’t bother even to pay taxes; fed up). And he says that Turkey straddling bt Europe & Asia has so much potential in minerals, timber, land, scenic spots, etc., and most of its able-bodied men can only think of going elsewhere to find work like the EU.
How fortunate we are I thought for a moment – a tiny, resourceless, no hinterland island sandwiched bt 2 green eyes buddies.
Citizen Soldier
Singpaporeans must vote in the opposition parties in next elections! Nowadays, I find that there are more and more old people and handicap selling tissues in public areas This was not so in the past. I’m sure that by reducing the defence spending and GST, this less well-off groups in the society would be able to benefit from the lower cost of living, and more funds can also be channelled to areas that will be of greater value to society, such as healthcare and education. The defence of Singapore will not be affected even with lower defence spending, becos the NSF and NSmen are only given a meagre allowance to perform national service and hence, will not constitute a large portion of defence budget, unlike the regulars who are paid thousands of dollars per mth to perform military service.
Unlike other countries that gain independence from armed struggles agst the colonial government, Singapore gained independence becos of the power of the civilians!
Shake head
Carol @20
The bigger the country and the more the population, the harder it is to control, not the opposite. Spore being tiny with a small population to administer, should be an advantage. Remember Lumexmbourg is rich too.
Talking of resources, US and Western Europe do not have oil supply like the Middle East. Some well to do countries also do not have quarries or plantations. Did Bill Gates need any natural resources to make the billions? What about Richard Bronson or Graham Murdoch or the many other international names? Spore with no natural resources is no longer a credible excuse with these examples.
Lastly, what do you think of Hongkong? Are they poor or undeveloped? The Govt that led them before China gained back sovereignty must be first class like PAP (btw its the British). Now that China has taken it back for more than 10 yrs, has it gone downhill? Does it not show to you that all these PAP self praises are but propaganda? And it works on people like you.
Anon.
You guys should watch the Channel 8 programme that screens every Monday at 8pm. It’s about needy families which fall through the cracks. One wonders how these families remain undetected by our government yet can exist in sufficient numbers to be the subject-matter of an entire season of programming.
E.g. the current episode shows a family of 4 – 2 60+year old parents who are ill with 2 intellectually and physically disabled children. Their application for welfare assistance was rejected, rental flat at risk of being repossessed by HDB.
Govt welfare assistance is a joke.
Joshua
To: #20 Carol
Becos Singapore had no natural resources, that’s why government need to reduce education costs and provide better education to groom local talents. By reducing defence spending, more funds can be channelled to subsidize cost of education so that the lower and middle income families can afford to send their children to polytechnics and universities. With more educated Singaporeans, Singapore will have better ‘brains’ and hence, lesser need for foreign talents.
By reducing defence spending, more funds can also be to channel to subsidize healthcare and hospitalisation costs, so that the lower and middle income families can afford to send their loved ones to be treated if they fall sick.
National Security is not just military security from external threats. The concept of national security encompasses economic, public health, environment, internal security. With reduction in cost of living from a reduction of GSTand well-being of the people in terms of heathcare, safer homes from terrorism, THEN Singapore is worth Singaporeans to defend. Military defence will not be compromise with a reduction of defence spending, becos over 90% of SAF is make up of NSmen and NSFs, who as Citizen Soldier mentioned in #21, is only given a meagre allowance.
If Singapore really need talents in the SAF, the government should recruit veteran soldiers from other countries who had fought battles before to serve as regulars in the SAF, since now there are also Russians, China PRs, etc serving their NS in SAF. It is even cheaper to recruit veteran soldiers from Iraq, Iran, Afghanistan to serve as regulars in the SAF than recruiting a Singaporean. Hence, by doing so, the defence spending can be cut and GST reduce.
bang pui
the ‘pore suffered economically also due to whatever chapalang reasons.
how on earth is it gonna come out of this situations?
i am sure no gst hike.
u think i pang sai or not?
i no no leh.
Kang Ah Roo
gst is only meant to help the ministerial “poor”… not ordinary singaporeans lah…
so obvious one, right after they increased the gst, they increased their own pay.
surprise
We sure have lots of lair in the parliament. Is time to wake up Singaporean before all of us become Sickapoorean or Silkapoorean.
andrew leung
“Why must Singapore implement GST?
GST was introduced as part of a larger tax restructuring exercise, to enable Singapore to shift its reliance from direct taxes to indirect taxes. GST has also enabled Singapore to sustain a lower income tax rate. Being a tax on consumption, and not income, GST inherently encourages savings and investments. – IRAS”
Frequently Asked Questions on the proposed increase in GST
from 5% to 7%
http://www.mof.gov.sg/budget_2007/gst.html
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I heard GST was to catch those who did not declare or under-declare their income for tax evasion.
Perhaps TOC can network with professionals from legal, tax/accounting and other sectors to raise further questions on Singapore’s Policies and Budget etc.
Feedback Exercise -
We welcome your views on what Budget 2010 should encompass to meet the needs and aspirations of all Singaporeans.
commentator
PM Lee: ” It is a whole set of measures which we are taking in order to tilt the playing field in favour of the lower income group, which is what we have to add and tally in the balance, and my purpose is to help the lower income group.”
What a lame excuse! If GST could really help the poor, why don’t the PAP govt raise GST to 50%? This will certainly help a lot of lower income group, right?
The PAP have even run out of believable excuses.
Oxford Dude
28) andrew leung on December 21st, 2009 9.48 pm
I heard GST was to catch those who did not declare or under-declare their income for tax evasion.
Perhaps TOC can network with professionals from legal, tax/accounting and other sectors to raise further questions on Singapore’s Policies and Budget etc.
Ministers and senior civil servants are so handsomely paid. They should be the ones figuring out all these stuff, not a bunch of volunteers.
prettyplace
Oh Carol….you are but a fool…..
How sad when people compare apples and oranges.
And people let’s not digress….Defence spending is a need…however, i must agree, it has been going up too much each year.
Now this article is a timely one for the PM to answer. I knew this goondu would raise the GST but I least expected the timing. Literally skyrocketed inflation into double digits.
Now since, his reason was for the poor…..bring it on, Show us where the money actually went. I do trust them not to be corrupt, but did they really help the poor.
Or pocket it as salaries.
Poor PR’s and FT’s feeling the pinch now….like what I said…from now on
The Feel Good ….Your Are Singaporean …feeling will be advertised….
elections coming and they must make us all feel special….
We will soon witness …. PAP the Saviour…..stories and mind games.
100% increase on a childs school fees…what a stinking joke….shows how well they are planning for years ahead.
I am not surprised by Ng whatever Hen…remember in the last last election he said” Can the Opposition, bring the price of Oil down”….what a fool, to say such a thing….and now out of nowhere…putting pressure on PR and FT parents….
Utter goondu, this one.
Philip
Uhm … but by your own analysis, it seems that the government has not only been helping the poor, but they have actually increased the amount going to the poor.
And you seemed to have left out some other welfare schemes, such as fully funded welfare homes, topping up for charities, support schemes for the poor at hospitals etc. If you undercount the services government provies, you’ll obviously find a shortfall.
scrumbili
My question is, what is the point of questioning when
the people are the ones who accepted gst hike(s)?
Would the so-called 1st world citizens majoritily give a hoot about where the money went to helping who as much as they have always accepted hikes, where acceptance can be in several forms?
i foresee and suspect that they will accept even if there is hike after the ele…..
based on historical evidence niah can or not?
Singaporekia
Govt should focus on the economy and focus on how to make everyone contribute more, so increasing the GST from 5% to 7% is not at all bad. A good govt should try to make the pool of poor smaller and not trying to help the poor directly by making them pay less for everything. Those with an opposition mentality always want the poor to pay less and if the pool of poor is getting bigger they get more votes, the poor will be pushed to a corner by the opposition eventually if they get to rule.
Bor lah jian
If more citizens or residents is because of more FTs turned PR or citizen, can it be logical to suggest that the increase in population is huge and more new residents are skilled in some way such that they can command decent salaries?
If so, if the native citizens who become poor increase, would this be reflected if more new comers than new poor?
andrew leung
30) Oxford Dude on December 21st, 2009 10.08 pm
Ministers and senior civil servants are so handsomely paid. They should be the ones figuring out all these stuff, not a bunch of volunteers.
I believe that the citizens may have a different perspective and can offer suggestions that are beneficial. I would definitely wish to see how opposition parties and their candidates wishlist/budget excercise for 2010 differ from PAP.
Grappling Struggling and Trying effect of GST – a wonderful experience and indeed a burdensome gift to the people who definitely hate what they adore to reward and give .them. – ubiquitously , in all their expenses.
David
Just finished watching transformer 2 at Channel 8 hosted by Quan Yifeng and Mark Lee where both of them went to help those poor and needy home to render their help with volunteers. Than one of the woman told the hosts that she was humiliated when she tried to seek help at ToaPayoh 4th floor (??) help center? She told the hosts that she eventually gave up when the officers there were rude to her. Now we realised the reluctancy of our govt to help the poor is very real and not a joke.
OB Marker
the fact is,we’re lucky(so far) that,there are no natural disaster., not really they are capable. That kind of things can wipe off your entire reserve in one swipe..
FaceTheFact
#20 Carol,
Germany schooling is free. Germans cleaner paid better than our executive worker. Germany does have welfare for needy, Germany Mercedes is cheap (E250 cost €44K (~S$88K) while cost S$250K in Sg). AND most important of all to Germany, their favourite BEER is damn cheap! Asking them to forgo all these cheap thing and stay in Singapore??? Well, unless they are really a very high paid director. Their commoner live like a Singaporean millionaire in German!
Yes, Germans are unhappy with their government, they are also unhappy with the merger of East/West German that created social problem, they are also unhappy with Holland that many travel there to take drugs but so far I have never heard my Germany friend complaint about corruption, perhaps you might mistaken they are corrupted due to they forgotten to pay themselve millions :)
Pls lor…use your brain lah. If not Germany will con your body and throw away your soul…haha.
Singaporean
“Govt should focus on the economy and focus on how to make everyone contribute more,”
Could you please elaborate. To whom or what this more contribution should go to work on.
“so increasing the GST from 5% to 7% is not at all bad.”
It is counter intuitive on the part of anyone who is having to pay out of his own pocket to be positive about any increase in taxation. You are truly exceptional.
“Those with an opposition mentality always want the poor to pay less and if the pool of poor is getting bigger they get more votes, the poor will be pushed to a corner by the opposition eventually if they get to rule.”
So how would not helping the poor at present by not letting them pay less help their case. Aren’t the various funds for PA being created and set up meant precisely to assist the poor and any further calls to do that are merely to reinforce or enhance as the recession is pretty serious.
Ryvyan
I wasn’t of eligible age to vote during the last elections, so basically so far the past few years have been a downward spiral?
- increase of GST
- influx of foreign workers + talents
— salaries down
— flat prices go up
- increased cost of living across board
What other negatives and positives are there that can be summarised?
tiredsingaporean
10) David on December 21st, 2009 4.06 pm I do not see the poor getting help after the 2% GST hike. What we did witness is the immediate effect of ministers helping themselves with salaries increment.
You singaporeans still don’t realise up till today that all of you been tricked over and over all these years?
mad93
Impressive propaganda by PM Lee. Despite the inevitable economic boom for the past decade, i find it intriguing when I saw the number of people are poor. It seems that the govt fails to eradicate the poor, their policy has again failed.
Leong Sze Hian wrote an excellent revelation. Not forgetting Andrew Loh.
The ball is in the PAP governments court to open the chest and be transparent
on all matters. Why are many unpleasant truth never be surfaced until someone exposed them??
macam macam
Goreng Sampai Tua meaning bluff until you grow old
Ketupat
Amazing!
Malaysia air force shot down one of their own planes without goig to war. Apparently the multi-million dollars fighter jet engine was quietly packed and shipped out to S America. Submarines get stolen. Now planes. Protectors of the nation.
lim
@23) Anon. on December 21st, 2009 9.19 pm
I saw that episode too, and when the mother said that when she went to hdb toa payoh for assistant, the staff there were rude, and keep telling her to get a job… They don’t understand that she needs to take care of her 2 intellectually disadvantaged children..
So much for 1 million smiles and compassion..
Well, one thing I am sure is that now that mediacorp has screened it, the grassroots will be queuing up to help the family..
Fortune-teller
If the property bubble were to burst, I wonder how many of those who bought at high prices will end up in negative equity?
And if for some unfortunate reason some of these owners were to lose their jobs as well, how can they downgrade to a smaller unit with an outstanding loan that hasn’t been paid off?
Does HDB have any contigency plan for such a scenario? Or will they be laughing all the way to the bank instead and say that these people went in with their ‘eyes’ open?
saturn bitch
40) FaceTheFact on December 21st, 2009 11.47 pm
“…Germany does have welfare for needy, Germany Mercedes is cheap (E250 cost €44K (~S$88K) while cost S$250K in Sg).”
talking about cost of thingies ….
let me put things in perspective:
Cost of Brand NEW only, Made-in-Germany
Porsche Boxster, bought in UK, costs this much : 74,586 SGD
(as of today’s exchange rate)
(reference : http://www.carpages.co.uk/guide/porsche/porsche-boxster-guide.asp)
vis-a-vis
Honda City, bought in singapore, costs this much : 73,500 SGD
(reference: sgcarmart http://www.sgcarmart.com/new_cars/newcars_listing.php?MOD=&PR1=70&PR2=80&VT=Any&DT=Any&imageField.x=32&imageField.y=12)
Is it not great? Honda city is cheaper!
But compare :
Honda City : built in thailand, 1.5 litres, horsepower ?? heeee
Porsche : built in Germany, 2.9litres, horsepower 255 bhp (super car !)
Shake head
Singaporekia @34
////”Govt should focus on the economy and focus on how to make everyone contribute more, so increasing the GST from 5% to 7% is not at all bad.”///
- Is that all a Govt needs to do? Just open the land (or legs) for investors (or pimps) to come and grow the economy, and just make you & I contribute more. You conveniently omitted to mention contribute to who or for what? Don’t you understand this article is about the shortcoming in distributing the revenue? Yes, increase the wealth of the nation but for who to enjoy? Who?
///”A good govt should try to make the pool of poor smaller and not trying to help the poor directly by making them pay less for everything.”///
- Your simple mind must have told you that poverty equates laziness. Can poverty not be due to old age without employment and no pension, disability and not able to work, illness and not able to work, young infant children who needs 24/7 care, etc? With zero income and dependents to care for, even making them pay less for everything is too much!
- Be careful what you wish for as it might be your family who need handout next unless you are one of the Mini-stars. No one can guarantee you will never fall ill or become disabled or have intellectually disadvantaged children unless you are God.
///”Those with an opposition mentality always want the poor to pay less and if the pool of poor is getting bigger they get more votes, the poor will be pushed to a corner by the opposition eventually if they get to rule.”
- I want the poor to be genuinely helped. Does it mean I have an oppo mentality? The poor are already ‘pushed to a corner’, worse they are condemned by the PAP. For the poor to vote the opposition, it is a no brainer – they are not risking anything my dear.
Harry
We the citizens are the “natural resources”. We are the “cash cow”. They “milk” us from GST, HDB, COE, ERP, IRAS, RADIO/TV license, Property tax, Income tax, SC&C, Utilities. Now go up roof garden at Pinnacle also “milk”. “Milk” already milk go where? Help China built schools, roads, give China Chinese student money to study here. While our students here can hardly afford to buy books, uniforms and even food during recess time.
carolthestupidbimbo
[i]Carol on December 21st, 2009 7.20 pm Don’t buy lor.
Buy essentials lor.
Schools must have, transport system must have, polyclinics must have, public servants must have, flats must have, water must have . . . . . .
Who pays? Santa Claus?
Taxation lor.
Hey Singapore got no oil, mineral resources, no plantations, etc., leh. Just the PAP leading 4.5 million people lor for the pst 45 years.
Use brans lor.[/i]
so you never shopped @ all
without a doubt you are a 101% splintster..
too ugy to get married or is your lips too WIDE?
you here says singapoor got no minerals sands or salts
yet the ministers paid themselves more than 5 digits/month…
you didn’t openned your big fat lips and shout why must you ministers have so high salaries?
than again a bimbo liked you sureLEE have no brain @ all
Die-Hard Singaporean
The per capita GDP for Singapore, from the Singapore Department of Statistics, is shown below, for the ten years to 2008. The per capita GDP in 2008 was S$53,192 ie the total wealth created in Singapore in 2008 amounted to $53,192 per person (man, woman and child, AND all foreign workers – everybody). If we took the foreign workers out of the equation the per capita figure would be $78, 330 ie Singapore is a SUPER rich country, not just rich.
1998 $35,115
1999 $35,371
2000 $39,683
2001 $37,088
2002 $37,874
2003 $39,463
2004 $44,487
2005 $47,192
2006 $50,244
2007 $54,834
2008 $53,192
So, where does the wealth created go? Food for thought!!
In 2005 there were 4,013 households with 4 or 5 persons (or 18,000 persons using the average of 4.5) living in 1 and 2 room HDB flats. There were 708 households with 6 or more persons (or 4,248 using just the minimum of 6) living in 1 and 2 room HDB flats. All this in a country with a per capita GDP of $53,192.
And, as Sze Hian points out, over 220,000 households (or nearly 800,000 persons, or nearly a quarter of the resident population, using the average household size of 3.5) are in HOUSEHOLDS which earn less than $2,000 a month. One can almost be certain that the proportion of citizen households earning less than $2,000 a month would be higher than that of the permanent resident household.
Agents Provocateur
Totally awesome how he can describe a regressive tax as ‘for the poor’. I might as well don a tiara and ask a battery of television cameras for World Peace. Reminds me of this fine image:
Hum Chee Peng
“54) Die-Hard Singaporean on December 23rd, 2009 8.50 am The per capita GDP for Singapore, from the Singapore Department of Statistics”
oh! that’s where these wonderful numbers come from.
hmmmmmmmmmmmmmmmmmmm…..
Balahguling Spongbongin
When foreigners cite the place as having Transparent system does it mean
the Answers to ALL questions from “F1 or F9″ and what are posted here are already publicly available somewhere out there?
Foreigners, over to you.
Humble Citizen
Tilt the playing field in favour of the lower income group? Since when our PM
became so generous and considerate? There is no playing field for the poor to play with in the first place, never mind the tilting and all the bulls!
Take for example the plight of the disabled, they have been fighting for the transport concession for 10 long years! Mind you they are asking for CONCESSION and not FREE, and yet what have you as PM done to this group of
underprivileged? Are they not on your priority list? They have been waiting for not 1 not 2 but 10 long years! If this group of people is not under your radar, we see the poor in Singapore better not to pin so much hope for whatever promise you handed out!
The Singapore Daily » Blog Archive » Daily SG: 22 Dec 2009
[...] Discourse – TOC: Tilting the playing field in favour of lower income group? – Ian On The Red Dot: Conflicts Of Interest – And Making That Extra Dollar – The Temasek Review: [...]
kiasu.n.kiasi
SAF Regulars – lower pay… Do you know that the career lifespan is in the Army is shorter than may of you along the streets… Many after they retire, they struggled. If you do not pay a little more, you do not get good people joining and our Defence will be weaken. If you still don’t feel shiok, then join the SAF as a Regular. If you are one with the attitude, I’m sure you will excel. Unless you are one who likes to sit and type in TOC silly remarks and exposing yourselves and telling people that you are empty in the head!
Poor getting help? Have you ever meet the self – claimed poor Singaporean who are always asking for help? Some are real lazy… Some are still searching for their brain (quit their job because they just simply dislike the boss, and yet has a family to feed), and expecting the Govt to feed them… The entire Nation will only improve if everyone strive to improve themsleves… Go study the subject called economics. It says the wealth of a country = productive of the people (not Govt giving money). Only when every Singaporean strive to improve themselves then they will get their quality in life.
Also have you got any knowledge that in some european countries / Australia etc; has much much higher tax that where you are living in? Are you only looking at their social welfare and benefits? At lease in Singapore you work hard, you get back from your blood and sweat… In those countries (in which many of you are trying to ask for – having great social welfare / benefit – i.e. Jobless you get allowance, wonderful elderly care etc.), they can possibly tax you up to 50%… Wake up! Can you get motivated people in the workforce if half their salary goes to the bums who sits at home and remain jobless and waiting for the Government to feed… Sit back and have a deep thought about this. Merry Christmas!!!
Peter
#59, kiasu.n.kiasi
The retirement age of SAF officers has been extended to 50 and after they retired, they will get at least $500k for retirement,. For those under Military Domain Expert Scheme, the retirement age is 60. Hence, it is not justifiable to say that becos the SAF has a short career span, they should be paid more, since now their career span is now similar to civilians. However, their pay is still much more than the civilian sectors! The more they are paid, the more the civilians has to fork out the taxes to pay them in the form of higher GST!
If you said that many of the SAF regulars struggled after they retired, you ought to know that many Singaporeans are already struggling even before they retired! At least the SAF regulars still has their hundreds of thousands of dollars in their bank account even though they said they struggled!
The defence of Singapore will not be weaken even if the pay of SAF regulars are cut, becos the NSmen and NSF’s commitment to defence of Singapore will be strengthen, becos with a lower cost of living with a reduction of GST or channelling of public funds to healthcare and education, Singaporeans will feel the worth of defending a country they can be proud to call theirs! Now, the foreigners had already captured the jobs and HDB flats of Singaporeans and the SAF cannot defend the state. The threat to natioal security is not in the military dimension. The threat to national security is now in the economic, in the form of high GST, lost of jobs and HDB flats to foreigners! Also, the threat of terrorism and H1N1 has also posed internal and public health threat to Singaporeans! That’s why the Reform Party is right that defence spending should be cut, so as to reduce taxes, and spend more on healthcare and education and restrict foreign workers!
RW
Actually, GST does not really harm the poor, since they get back what they paid in GST credits. The people it really affects are middle income, rich and tourists.
The middle income is affected, but if we think of the relatively small % of consumption of our spending (we are afterall a savings country) and offsetted by the GST credits, the effects are considerably less.
The main people it affects are the rich and tourist.
Rich because we are doing a sleight of hand- we reduce income tax to make us look attractive but we tax them when they wine and dine in sg.
But most of all, it is the tourist that pay more. As Singapore moves towards a more service orientated economy, gearing up for teh tourism sector, we need to raise revenue from here too. In teh past, they don’t pay any taxes. But now , with GST they have to contribute taxes too.
noiseMaker
Trust between the government and the people is the key to everything. If a government says thing that does not match what is really happening, the trust is gone and it is extremely hard to mend.
No amount of sweet talk or lessons can makeup the difference. It is not that the people does not know the difficulty of governing nor does not wish the country to succeed and prosper. They are worried and suffer in silent. It is a race where a lot of people are being left behind, they will feel the race is unfair.
Let’s hope those PAP MP or ex MP, who does not agree with the way PAP is now operating could come out of PAP and rise up for your people once again. They could form a new party or join opposition party to take on the PAP for goodness sake.
Singapore needs alternate government, ready to step into the governing shoe. Now the wind of change is likely to fill the air, those who could make it may just miss it and next time it won’t be so easy anymore.
The Singapore Daily » Blog Archive » Weekly Roundup: Week 52
[...] "Are the poor better off after getting the extra help from the GST increase?" Leong Sze Hian [...]
gchn83
The difference between the number of people considered to be poor in Singapore and the number of people who’ve received or are receiving financial assistance could be due to a lack of awareness of financial schemes as well as a lack of knowledge of how to apply for these schemes. Also, we have to consider that the poor may choose to receive help from religious groups, charity organizations and friends, etc., rather than from the government.
Alessia F.
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Cut the pay of the SAF regulars to cut defence spending and cut GST! In that way, the government can better help the lower and middle income group, since the majority of NSmen and NSF belong to these 2 groups while the SAF regulars belong to the high-income group!