Just wondering if others can fill up some gaps for me on income
tax.
Our govt have always boasted that our income tax is one of the
lowest in the world. And they always tell us that other countries
like those in Europe, or Australia, have taxes like 30% or 40%.
But I wonder are we naive to think that that is the entire
truth?
There are many aspects to consider:
Staggered tax
scheme.
Those countries that are being compared to probably do have
staggered tax levels like us. For example, if your taxable income
is $20,000 then your tax at that level is 5%, only the top group
will bear the max 30% or 40%.
I wonder if Singaporeans are naive to think that these countries
income tax is a flat 30% or 40% on everyone.
Reliefs.
I also wonder if anyone thought about the possibility that other
countries relief might be much higher than ours. Our reliefs are
actually quite limited.
Parents relief is $3500 or $5000 (Our parents expenditure is
only $291.67/mth or $416.67 /mth).
Wife relief (if not working) is $2000 (Our poor wife expenditure
is only $166.67/mth)
These reliefs have been there since the 'beginning of time'.
They have not been adjusted even though the cost of living has gone
up so much over the years.
In other countries, their reliefs might be higher and may have
many more types of reliefs that you can claim. At the end of the
day, even though their tax is 30 or 40%, they might be paying
lesser taxes than Singaporeans.
And they probably benefit more from the welfare given to
citizens. And their welfare definitely beats what our govt gives to
us.