Vehicle-related taxes make up 8% of government revenue

[Kezg1]

 

Our government has to be one of the most profitable government in the whole world

 

 

It's call filthy rich...the best part is running a country without natural resources...and last count in reserve was appx 200 bils.....

[Hydrocarbon]

Something interesting I read recently: Should we go for high income tax or consumption tax?

 

Both are ways for Govts to earn money, both affect the people, but which is better? (Western countries usually hit hard on income tax)

 

Income tax is perceived to be 'fairer', because it is related to income (you earn more, you pay more). But some say it discourages progress, because people may not have the incentive to strive to earn more (to avoid paying more).

 

Consumption tax on the other hand can also be seen as 'fair', because it's a flat tax on everything for everyone. But proportionately it affects the less well-off the hardest, and can be perceived as rewarding the rich.

 

So, like that how?

 

Consumption tax, IMHO, is fairer. And consumption tax isn't a flat tax. It is a variable. While GST falls under consumption tax (and also being a flat tax), there are liquor tax, tobacco tax, gambling tax, casino levy, COE, ARF, etc, which are levied on specific consumption items, which allows people more spending power on what they want.

 

More money in the bank to choose whether to help charity (no tax right?), or go overseas spend enjoy, or go overseas retire in future.

 

Besides, the richest people don't always have all their income from work. Some are dividends or such. So, how?

[Alheych]

 

Consumption tax, IMHO, is fairer. And consumption tax isn't a flat tax. It is a variable. While GST falls under consumption tax (and also being a flat tax), there are liquor tax, tobacco tax, gambling tax, casino levy, COE, ARF, etc, which are levied on specific consumption items, which allows people more spending power on what they want.

 

More money in the bank to choose whether to help charity (no tax right?), or go overseas spend enjoy, or go overseas retire in future.

 

Besides, the richest people don't always have all their income from work. Some are dividends or such. So, how?

 

income tax or consumption tax? it is really a matter of politics, not economics, anymore.

 

it really depends on the kind of ideology that the country has. in the west, where social equity is deemed to be everyone's responsibility, it is natural that income taxes are higher.

 

in singapore, we have been set in the paradigm of "reward for work, work for reward" for a long time. it's even one of our 4 principles of governance! http://www.ne.edu.sg/principles_of_governance.htm <-- i'm told that secondary school kids have to learn this in civics and moral education nowadays.

 

and because of this ideology, the government deems that people should be allowed to keep what they earn, dividends or otherwise. there's no permanently correct answer. as tharman said in an interview last year, this term of government has moved a bit towards left of centre. at the very least, i think it's safe to assume that GST won't raised anytime soon, perhaps not until the middle of the next term of government.