WP Jamus lim against tax transfer and urge tax marksmanship

 [08/11, 7:33 pm] : https://vt.tiktok.com/ZSpSJnbKX/

WP Jamus lim against tax transfer.

[08/11, 9:24 pm]  @Babe:1. A good and responsible Government will need to put sustainable diversified tax structure in place in running a Country to ensure sustainable financing of yearly Government spendings to benefit the population.

2. A good and responsible Government must always ensure financial prudence and maintain a budget surplus (in view of contingency) so that budget can be balanced if crisis arises - without resorting to unsustainable borrowings, loan or debts to finance yearly running fiscal budget and tackle crisis spendings.

3. Consumption tax (GST) is a fair broadbase tax, where anyone in the Country consume any economic goods or services, they also pay a small percentage of tax to share the tax burden. Unlike tax such as income tax, corporate tax that are paid by a smaller segment of the population base. It penalise and discourage people who are working and earning income that contribute to the Economy and putting heavier burden on the working people.

4. And your theory of tax markmanship cannot stand water in the long run, because you measure the budget surplus based on 1 or 2 year - but not the long term whereby it is not possible to predict and project what government spendings are needed - without first putting a sustainable tax structure (in this case, GST as one variable) in place. This is financial prudence and not wait for crisis to hit before scrambling to implement the GST.

5. Tax transfer and grants (in the form of vouchers) - is a way to redistribute the National Income earned through budget surplus strongly contributed disproportionately by the very rich and foreigners to the middle and lower class. This has ensure Singapore have a low GINI coefficiency 0.379 - indicating low income inequality.

Your suggestion to remove the vouchers means wanting the Government to discard tax transfer and grants - effectively stopping National Income redistribution from the very rich and foreigners to the middle income and poor - in effect will exacerbate income inequality and social class status in Singapore - and mess up Government effort to share the economic pies with all the population.

6. In conclusion, we support PAP economic, financial, tax and most of the governance policies.

WP policies are populist, opportunist, playing to the gallery to win votes - and not a serious party that can run Singapore.

@Babe:What are the positive outcomes of including the GST into our tax structure instead of shooting for fiscal marksmanship - in which government revenue and spendings become unpredictable in the short, medium and long term?

1. Able to improve the tax revenue, achieve financial prudence, increase the ability to achieve yearly balance budget, achieve fiscal surplus with sufficient dry powder to tackle crisis when it arises without the need to rely on the burden of public debt to finance the recurrent fiscal budget that we have seen in many countries.

2. Middle and lower income receive tax transfer and grants through vouchers - under the armbit of national income redistribution - and hence lower the effect of income inequality in our society that plague many countries and we achieve a respectable low Gini coefficient.

3. Very rich and foreigners are in effect inheriting the higher tax burden through the consumption tax - as their higher spending power, big ticket item purchase are translated into higher GST revenue collected - that are use to finance the recurrent spendings but also use as tax transfer to many Singaporeans.

Hence there are no reasons why WP strongly object to the GST tax, GST and CDC vouchers that benefit most Singaporeans - unless WP view it as a threat to WP political position and hence want to abolish GST and craft "fiscal marksmanship" as a smokescreen to fool Singaporeans voters that benefit everyone here at WP's expense.

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@Babe:07/10, 1:34 am]  @Babe:Jamus Lim and WP also attribute the 2% increase on GST is the cause of inflation.

But worldwide, where countries didn't raise GST, inflation are still rising due to energy crisis, tariffs war and geopolitical development.

@Babe:Many Countries which didn't raise their GST are experiencing higher inflation than Singapore which has raised GST.

The economic theory you expound cannot stand water.

@Babe:US inflation is 3.4%.

Singapore inflation is 2.3% despite increasing GST by 2%.

Your economic explanation cannot stand water.

@Babe:ASEAN inflation is 3.7%.

@Babe:EU inflation is 3.8%.

@Babe:Asia Pacific inflation is 4.2%.

@Babe:Jamus Lim also fail to understand that CDC vouchers will generate business for neighborhood - that bring about a multiplier effects of our domestic economy through circular flow of income without leading to leakage to external economy - boosting domestic business and creating jobs for SMEs.

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