Singaporeans overtaxed?

In his 1996 National Day speech, Prime Minister Goh said, “People often want the government to assume the full burden of the cost of medical care and provide treatment free to Singaporeans. Because of the painful lessons learned in other countries we have not done this. All the countries which have done this—Britain, France, Germany, Canada, and Communist China—have failed. Their systems break down as people overuse so-called ‘free’ health care, which they actually pay for indirectly through higher taxes. Their health services deteriorate. Waste and inefficiency become endemic. Now these countries are forced to cut back on services, introduce cost controls, and reform the system.”

The purpose of taxes are used in these countries for medical and other social benefits like pension etc etc etc. In Singapore, we have zero tax for those who earn less than $20000 per annum.

(1.) As most of those who pay zero taxes are those who spend for basic necessities in life. Singapore’s GST is applied across the board which includes basic necessities of life. Therefore, in essence, everyone is paying a minimum tax of 7%.

(2.) in other countries, the higher tax rates include basic health care and pension etc etc. Therefore, its similar to the CPF contribution which is 35%(Employer plus Employee).

(3.) Other indirect taxes – there are many(water, transport etc etc)

Total tax is a minimum of 35% + 7% = 42%….

If you lose your job or retired, you will be paying tax because basic necessities of life are subjected to GST. Therefore, if you interpolate the times of your life without income, you will be paying higher minimum tax. A good estimate will be 50%.

If you add the other indirect taxes which are plenty in Singapore, the average tax is easily 80% (medical, education, water, transport, electricity, petrol, property, stamp duty etc etc etc)

Note : the above is based on a salary of $20000.

If you smoke, drink and drive a big car, it gets even higher. Theo

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