The fair approach is “where the rich pay more and the poor get more” and the burden is not pushed to the next generation, says Deputy Prime Minister Tharman Shanmugaratnam.
Channel NewsAsia, 6 Sep 2015
With opposition parties presenting proposals galore ranging from free health care to handouts and a minimum wage, Deputy Prime Minister Tharman Shanmugaratnam took to the rally stage on Saturday (Sep 5) night urging Singaporeans to “see through” such “false promises”.
“There is no country in the world that has been able to provide something for everyone without raising taxes for the middle-income group – not France, not Germany, not the UK,” said Mr Tharman, who is also the Minister for Finance.
“The middle class pays very high taxes in order that everyone gets something. It’s a very expensive system for the middle class - not just for the rich.”
Alluding to the Workers’ Party’s proposal to increase taxes on the wealthiest group, Mr Tharman said: “I’ve been studying it for years. You can’t do it by just taxing the top 1 per cent. That’s a bluff. First, because the top 1 per cent know how to move money around the world.
“But secondly, you can’t jack up the tax rate for the top 1 per cent without affecting the next 5 or 10 per cent.”
Mr Tharman, who was speaking at a People’s Action Party rally held at Petir Road in Bukit Panjang, said the Government took “very seriously” the concerns of social mobility, workforce inequality and the elderly who need support. It has worked to address these issues, and is continuing to do more.Channel NewsAsia, 6 Sep 2015
With opposition parties presenting proposals galore ranging from free health care to handouts and a minimum wage, Deputy Prime Minister Tharman Shanmugaratnam took to the rally stage on Saturday (Sep 5) night urging Singaporeans to “see through” such “false promises”.
Mr Tharman Shanmugaratnam explains about our tax system and how it has benefited our middle income and low income residents in Singapore at the Holland Bukit Timah GRC & Bukit Panjang SMC Rally tonight.Listen to the end about whether GST will be increased in the next 5 years.Video Credits: Toggle.Sg#GE2015 #PAP4SGGet breaking news, live updates, and exclusive content, on the go, please click: http://bit.ly/pap_link_up
Posted by People's Action Party on Saturday, September 5, 2015
“There is no country in the world that has been able to provide something for everyone without raising taxes for the middle-income group – not France, not Germany, not the UK,” said Mr Tharman, who is also the Minister for Finance.
“The middle class pays very high taxes in order that everyone gets something. It’s a very expensive system for the middle class - not just for the rich.”
Alluding to the Workers’ Party’s proposal to increase taxes on the wealthiest group, Mr Tharman said: “I’ve been studying it for years. You can’t do it by just taxing the top 1 per cent. That’s a bluff. First, because the top 1 per cent know how to move money around the world.
“But secondly, you can’t jack up the tax rate for the top 1 per cent without affecting the next 5 or 10 per cent.”
"We don't simply pass on the burden to the next generation": People's Action Party's Tharman Shanmugaratnam. #GE2015 bit.ly/paprallysep5
Posted by Channel NewsAsia Singapore on Saturday, September 5, 2015
“But let me make this very clear - we are doing it in a way that is fair, where the rich pay more and the poor get more. We’re doing it in a way that is fair, because we’re not pushing the burden to the next generation, to our children and grandchildren. That is what fairness is about,” said the candidate for Jurong Group Representation Constituency.
THE MYTH OF EGALITARIAN ‘FREE’ SYSTEMS
Mr Tharman pointed out that in France, the average worker pays “well over 20 per cent” of his or her income to the government, in the form of income tax and a value-added tax.
THE MYTH OF EGALITARIAN ‘FREE’ SYSTEMS
Mr Tharman pointed out that in France, the average worker pays “well over 20 per cent” of his or her income to the government, in the form of income tax and a value-added tax.
It would be the equivalent of a median worker in Singapore, who earns about S$3,800 a month, paying S$850 in income tax and goods and services tax (GST), he said.
“So, when you think of free healthcare and free social services, you must realise it is not free. The average citizen is paying for it big time in these countries… because everybody, including the rich, is benefitting,” he added. “It is a complete myth to think they are egalitarian systems.”
In Singapore, for every S$1 that a middle-income family pays in tax in one form or another, they get back S$2 in subsidies – such as for education, healthcare and in retirement.
Compare that to Finland, said Mr Tharman, where for every $1 the middle-income group pays, they get back $1.30.
As for the bottom 10 per cent in Singapore, they get back S$6 in subsidies for every S$1 of tax – mainly GST – that they pay, he added. The top 10 per cent, meanwhile, get back 20 cents for every S$1 paid. “That’s what I call a fair system,” he said.
THE MYTH OF TAKING FROM INVESTMENT RESERVES
To ensure that a heavy burden is not placed on the middle-income group, Mr Tharman said the way was to keep income taxes “low or close to zero” for them and to “try as far as possible to keep GST low in years to come”.
But he called it a “myth” to think it was possible to draw more money from the investment reserves.
“We are already maxing out on our investment income from the reserves. The Constitution allows us to spend 50 per cent of income from reserves,” said Mr Tharman. This has gone to increased spending on social programmes, health care and infrastructure. “There is no more money left that can be taken out without compromising the next generation.”
THE MYTH OF TAKING FROM INVESTMENT RESERVES
To ensure that a heavy burden is not placed on the middle-income group, Mr Tharman said the way was to keep income taxes “low or close to zero” for them and to “try as far as possible to keep GST low in years to come”.
Mr Tharman Shanmugaratnam: "We have been upfront.... That's what responsible politics is all about."Video Credits: Toggle.Sg#GE2015 #PAP4SGGet breaking news, live updates, and exclusive content, on the go, please click: http://bit.ly/pap_link_up
Posted by People's Action Party on Saturday, September 5, 2015
But he called it a “myth” to think it was possible to draw more money from the investment reserves.
“We are already maxing out on our investment income from the reserves. The Constitution allows us to spend 50 per cent of income from reserves,” said Mr Tharman. This has gone to increased spending on social programmes, health care and infrastructure. “There is no more money left that can be taken out without compromising the next generation.”
In fact, he noted, the Constitution was changed this year so that more of the returns earned by Temasek could be taken out for spending on the Budget.
"That's just cheap": People's Action Party's Tharman Shanmugaratnam refutes the opposition's "scaremongering" on what the party will do after #GE2015. bit.ly/paprallysep5
Posted by Channel NewsAsia Singapore on Saturday, September 5, 2015
Mr Tharman also lambasted as “scaremongering” some opposition claims that the PAP would raise GST after the elections. “That is just cheap,” he said. “We have been upfront and I said in this year’s Budget very clearly, we have raised the revenues we need for the next five years.”
Measures taken, such as increased income taxes on the rich and a hike on higher-end property taxes, will give the Government S$4 billion a year over the next five years, he reiterated.
HELPING EVERYONE DEVELOP THROUGH LIFE
Beyond redistributing resources, Mr Tharman also emphasised the need to open up new opportunities for all Singaporeans, “no matter where you start from”, to maximise their talents.
At the primary school level, 50 per cent more is being spent on weak learners compared to the average child.
“We used to think, in the past, that how well people did depended on what they’re born with or what they do in education early in life. That’s not true,” he said.
“You may start off weak but you can develop your strengths through life. We’re going to be making it possible for every Singaporean, through education, expanding the ITEs and polytechnics, and through SkillsFuture, to keep developing through life.
“We must make that possible in Singapore, in a way that no country has achieved,” he added.
“Maximise opportunities, have a fair system, a fair deal for the middle class – that’s our new path.
"And I feel proud to say we start on this new path from a position of strength, not weakness unlike so many countries - because our pioneer generation saved up with they were young, our subsequent generations kept the same ethic of working hard and putting something aside, and future generations will now benefit,” said Mr Tharman.
"And I feel proud to say we start on this new path from a position of strength, not weakness unlike so many countries - because our pioneer generation saved up with they were young, our subsequent generations kept the same ethic of working hard and putting something aside, and future generations will now benefit,” said Mr Tharman.
“There is no country in the world that has been able to provide something for everyone without raising taxes for the...
Posted by Channel NewsAsia Singapore on Saturday, September 5, 2015
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