Mar 2, 2012 - ST Forum
MP DENISE Phua (Moulmein-Kallang GRC) proposed an increase in income tax rate for top earners to help pay for increased social spending ('Tax rich more to fund social spending'; Wednesday).
In my view, we should focus on another aspect of tax policy: the absence of a tax on investment returns.
We should take a leaf from multi- billionaire American investor Warren Buffett's book. He advocated taxing his wealthy peers, arguing that the rich pay less tax because their capital gains are taxed at only 15 per cent in contrast with an income tax rate of 30 per cent.
According to him, such a tax policy has resulted in the absurd reality of someone so wealthy like him enjoying a lower tax rate than his office staff.
The general trend is that the wealthy derive a far greater proportion of their earnings through investments, as compared to the less well-off.
This is for the simple reason that they have more savings and hence the capital to invest.
In Singapore, capital gains as a result of personal investments, such as stocks and property, are not taxable.
Introducing a capital gains tax will ensure that everyone pays a fair tax on all his income, regardless of the source of the income.
This will provide a substantial amount of Budget revenue to fund the social and productivity initiatives.
Xing Yun
will they make a clause that ministers are not subjected to such gain tax? If that the case, it might work.
Good idea. Tax those who posses assets are over 5 millions and above.
i think should be enough. Enough to help poor who earn 1.5-1.8k like me. Most importantly able to help elderly.
i tell u. Many people very greedy keep on wanted to buy private property. MAKE IT AS SKY HIGH AS POSSIBLE.
Bungalow - 10 m
Terrace - 8m
Semi de - 6m
- Condo - 5m
I repeat only the rich and foreigners can live there. Security guard increase 2000 maintaine one month.
possible??