Two can disagree over GST and still get it right
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Mar 3, 2011 - ST Forum
I REFER to Tuesday's reports ('PAP MPs question who WP is trying to help'; and 'Rebates, subsidies ease hardship only in short-term, says Low').
Worker's Party (WP) chief and MP for Hougang Low Thia Khiang and People's Action Party (PAP) MP for Holland-Bukit Timah GRC Christopher de Souza were both right in disagreeing about lowering the goods and services tax (GST).
While Mr de Souza is right that higher consumption by high-income earners leads to greater tax collection which is redistributed more among the lower-income group, Mr Low is also correct in saying that lowering the GST will directly help the lower-income group.
The immediate benefit will be felt more than the indirect benefits in the form of tax rebates, which is exactly what this group of citizens need.
The Government should review lowering the GST on daily essentials like food items which will help the needy, while the GST on non-essentials or luxury items should be maintained as they affect mainly the high-income group.
Ong Chee Keong
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"It is surprising that Mr Ong is suggesting to lower the GST for daily essentials. Who does he really want to help? High income earners, as we know, consume more food, and therefore pay higher GST. And we know in that pool of tax collected, it gets redistributed to lower-income earners."
still nothing can beat the PAP logic.
Btw, i wonder why the PAP hasn't come up with a reply to the above article. Duno how to reply I guess, cos they won't admit that their mp screw up.
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Following in the line of Goh Chok Tong's former logic regarding HDB's policy.
Question is.....was the policy good?
Unhappiness + Those Who Are Happier = Net Happiness
It's all about Net Happiness.
http://www.youtube.com/watch?v=A6K-U2skg28&feature=player_embedded#at=153
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Oh yeah!
Didn't they know that GST can be lowered, the shortfall can be made up of increases in income taxes for the top bracket earners?
Isn't that more intuitive idea rather than taxing the poor with GST just because you want to tax the rich more.
The declination of the PAP mind.
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the reserves isnt enough to help the poor?
need gst to help?
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Originally posted by dragg:
the reserves isnt enough to help the poor?
need gst to help?
the reserves cannot help, it's for investment only.
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Lee empire building.
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Originally posted by βÎτά:
Lee empire building.
Lee foundation..
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Define daily essentials.