Wijeysingha takes Tharman and press to task

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Wijeysingha takes Tharman and press to task
Thursday, 17 February 2011
Vincent Wijeysingha

The quality of reporting in the local papers today on the SDP’s Shadow Budget 2011was predictably banal, absent of any serious analysis that would help Singaporeans differentiate between the ideas of the SDP and those of the PAP.

For example, in its SDP unveils its ‘Shadow Budget’, Today (whose slogan is: ‘We Set You Thinking&#8217 Wink , did not deal with the merit of the SDP’s budget proposals in themselves but compared them unfavourably against PAP programmes.

Referring to the SDP’s proposal to abolish GST for basic foodstuffs and medicines, it said:

‘”Such a proposal is not new….Then, Finance Minister Tharman Shanmugaratnam referred to a household expenditure survey, which showed that the most commonly cited eight essential items make up only 5 per cent of the expenditure of the bottom 20 per cent of households.”
’
In figures recently published by the Department of Statistics, the average income per household at the bottom twenty percent is $2040. Five percent of household expenditure is $102.

Does Today (and the Finance Minister) really think that ordinary people spend only that amount on household essentials every month ($102 divided by 4.5 weeks in a month would be $23 per week)? Is the Minister so out of touch with the reality of family spending? If so, he has no business being in charge of finance.

His other justifications are also unintelligent. Exempting GST would not mean raising it on other goods to balance revenue and expenditure. There is no reason to argue that it cannot be raised on only certain goods such as luxury goods, increasing taxation at the higher end of the scale, reducing expenditure through cost savings such as thinning down the PMO, and eliminating subsidies for foreign students, all of which proposals the Shadow Budget 2011 have proposed.

These are not the real reasons for the PAP’s GST policy, and we all know it in the SDP. The real PAP objection to our proposals are twofold. First: it taxes the wealthier more and this is a policy anathema to the PAP since it is a party committed to the rich and the exploitation of the poor rather than to all Singaporeans. Second: the PAP stands to have its own salaries, perks and lavish conditions reduced if smaller and frugal government is imposed.

Today also reported Mr Tharman as saying:

‘”That is why we have decided that the most effective way of raising revenues to help the poor is to administer a simple across-the-board GST rate on all products in the market and to, instead, compensate the lower-income group through more offsets and use the GST revenue to fund Workfare.”
’
Using subsidies to assist Singaporeans after higher taxes are imposed is a foolhardy way of managing household income. What the Minister is saying is this: First, I set taxes at a rate you cannot afford. Then I use those taxes to give you a subsidy so that you can pay the tax. If this is the best form of taxation the Minister can conceive, there is clearly no skills match between him and his job.

But we, the people, are not easily fooled. Subsidy-giving enables the PAP to say that it is a caring government that dispenses generosity. The PAP wants the people to think that no other party would, firstly, be able to amass such riches and, secondly, be kind enough to give it away. It is untrue. But more importantly, it is inept.

Additionally, Workfare does not assist the average employee to cope with rising costs. The vast bulk of Workfare does not enter the pockets of Singaporeans, it is put into their CPF account, the spending of which is deferred. Workfare is a red herring.

The quality of PAP policymaking and of debate are abysmal. But that is no surprise, given that they are essentially bureaucrats who are absorbed into the ruling party purely to give expression to the views of one man, the former Prime Minister, from whose outdated ideas of government and administration, the newer leaders has been unable to escape.

For instance, the productivity measures we have seen in government budgets in years past have been totally without success but, again, found their way into the 2010 Budget. It will be interesting to see if our Finance Minister retains them in the one he will announce tomorrow.

It is also unfortunate that our newspapers do not reflect these simple and logical observations about taxation. At the press conference, I reminded the press that they have an almost sacred duty to inform Singaporeans. Unfortunately, it continues to be clear that their real duty is to put the best gloss on PAP rhetoric. And when that rhetoric is so appalling and unintelligent, it only results in confirming the stereotype of the press as the mouthpiece of the PAP.

The Straits Times argued previously that the opposition has no one to blame if it does not do well in the polls. This argument is entirely debunked when his colleagues in the press continue to parrot the government line without any educated or informed comment.

We wait to see if the media will act responsibly in the days and weeks to come; if it will conduct a fair and balanced analysis on the SDP’s Shadow Budget and a comparison with the government’s Budget so that Singaporeans can make an informed choice at the coming General Elections.

Or will the press simply devote many column inches to praising the Finance Minister for his wisdom and munificence?

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sbst275 SG

Dear CSJ,

no doubt e GST is regressive tax regime. But what you're suggesting, you've to find a way to recover parts of the loss in reciepts.

The 10% GST on luxury goods wun recover much esp if a big chunk are purchased by tourist. You try taxing them by removing e GST refunds, good luck. Prepare to face fallout of biz at Orchard Rd. Are you in SDP prepared for such be it intended or unintended implications?

As for defence. As long as we depend on imports, can forget abt having w/o SAF. I think SDP is making a mockery of how on earth was SAF made to form - over water.

Also, I dun see how democractic CSJ is up to is when he refuses to admit defeat in elections . Tat same goes to being diplomatic

sbst275 SG

you freeze public transport fares, at e same time kpkb abt stangant wages.. wat abt bus drivers's wages?

I think this shadow budget is doing more harm

GOD is my dog SG

good to see more people putting in effort to demonize PAP.

nfshp253 SG

Why won't CSJ just shut the fuck up? He comes up with retarded ideas and when he doesn't win, he blames PAP. Wake up, moron!

mancha SG

They don't realise the folly of taxing certain goods and services and also at different rates.

Do we want birds nest to be come medicine to escape GST?

I want to exempt my car from GST because it is a necessity.

Yes, GST on gula melaka because it is a luxury item. So your chendol must pay GST.

You may be smart in comming with a shadow budget, but don't forget the people are crafty, especially ther rich ones.

Flat rate across the board, Plain And Simple, Stupid. No arguments, no grey areas. No haggling.

Asromanista2001 SG

certain items should have lower GST or even no GST..................

basic food items at least....................like rice, cooking oil.............

sbst275 SG

certain items should have lower GST or even no GST..................

basic food items at least....................like rice, cooking oil.............

where are you going to recover? Increase corp tax or increase petrol tax?

Dun tell me go draw reserves.

βέτά SG

Singaporeans are greatly influenced by whatever crap the PAP prints on the newspaper and media.

PAP's budget has a habit of underestimating revenue (taxes) and overestimating expenses for almost every year, every year they have revenue surplus except for one or two years when economy was very bad.

There is no need to draw on reserves like some folks think, I think they can operate on a balanced budget.

Singaporeans love to pay GST for everything, unlike other countries like Australia who exempts things like books, medicine and basic food items.

βέτά SG

Sighs......seriously most Singaporeans have IQ of less than 100, that's why PAP is still in power. That is precisely why PAP wanted more foreign talents to make up for the intelligence deficit.

No independant thoughts, everything they spew on the forums is a result of mass media propaganda, when countered, they can't give you a good rebuttal.

βέτά SG

Perhaps can consider raising the tax bracket for those upper middle class income earners also.

sbst275 SG

Singaporeans are greatly influenced by whatever crap the PAP prints on the newspaper and media.

There is no need to draw on reserves like some folks think, I think they can operate on a balanced budget.

Singaporeans love to pay GST for everything, unlike other countries like Australia who exempts things like books, medicine and basic food items.

you can say whatever you like abt GST

wat's e VAT in Aust? Dun tell me what I know is propaganda?

βέτά SG

you can say whatever you like abt GST

wat's e VAT in Aust? Dun tell me what I know is propaganda?

Wait I go Google.

I am not saying what I like here, what I say here can be attested to facts, something which I can't say for your postings.

The GST is levied at a flat rate of 10% on most goods and services, apart from GST exempt items, and input taxed goods and services.

I also have to correct you that in Australia, the ad valorem tax is not called VAT, but GST.

If you can't justify your statements through by yourself, then it's PAP government picked up from the mass media with no forethought whatsoever.

You said they need to draw on reserves to sustain the kind of budget this guy proposes?

Did you know that the PAP government had total receipts of S$52 billions and expenditure of S$43 billions in 2009? There is still surplus of S$10 billions despite it being the worse year in a quarter of a century. That was the year where the economy was in turmoils and they came up with the Resilience Package to so call help businesses.

Seriously, greed knows no bounds.

Now stand up by your own statements if you tell me what you spew out is not PAP propaganda from the mass media.

Asromanista2001 SG

where are you going to recover? Increase corp tax or increase petrol tax?

Dun tell me go draw reserves.

if PAP is truly trying to help people...................

spend less on SAF lor....................reduce pay of super-scale civil servants lor.................

reduce number of ministers WITHOUT portfolio and nominated MPs lor...............

S'pore is just a city....................why such a HUGR and OVERPAID bureaucracy ?

βέτά SG

I also provide for you the list of GST free services in Australia.

You pay GST on taxable supplies that you make unless that supply is GST-free or input-taxed. If you make a supply that is GST-free, there is no GST payable on that supply (that is, you do not have to pay GST to us when you make a GST-free supply).

Broadly, the following are examples of GST-free supplies:

In contrast to input-taxed supplies, an acquisition or importation that you make which relates to making those GST-free supplies may be a creditable acquisition or a creditable importation. This means you are entitled to claim a GST credit if all the other requirements for making a creditable acquisition or creditable importation are met.

A supply that could be both input-taxed and GST-free is a GST-free supply.

Asromanista2001 SG

S'pore is running on the same agenda as UK, US and Europe...................

rising GST................bigger and overpaid bureaucracy................more foreigners...........and rising national debt..................

serving the same masters..................