Originally posted by Rock^Star:
Singapore depends very heavily on Foreign Direct Investment (FDI).
Low corporate taxes have been a feature since Singapore started its
pursuit of FDI in the 1960s.
Mat Toro argued in the GST thread that low corporate taxes
boost entrepreneurship. So how many world class brands
have we seen from Singapore over the years as compared to
Taiwan?
Taiwan has a 'messy' parliament - but has many world class
brands.
Singapore has a 'stable' parliament - but has only a 2 or 3 to
boast of.
Well said, the same was also said
by CSJ in his books written that Singapore's Taxation has been
designed to create job opportunities more then for any longer term
goals that can benefit Singapore.
Through the years, the original FDI scheme had resolved the
unemployment situation by jump starting the process by bringing in
MNC that needed cheap labor - which Singapore had and with the
workers being educated at least up to middle school levels.
Through the years, taxation was used to PURPOSEFULLY price
the Singapore Labor out and push the MNCs to bring in 'Higher Technologies' - with the goal
of increasing higher worker wages - to achieve the ''Swiss Standard
of Living''.
Unfortunately, the economic direction taken since the 1960s was a
purposefully and continued dependency on FDI and not on local
enterprise - even till this day.
This is the only option when the Taxation system has - and continue
- to absorb the bulk of
private monies into the Government Treasury.
Is the Singapore Taxation low by international standards ?
Can the Singapore Tax be low whenever the Singapore Government
reduce one tax but replace it with some others - ''give with one hand and taking it back with
two'' ?
If we combine all the different forms of direct and indirect taxes
that one has to pay for doing business - or living and working - in
Singapore, we maybe surprised to find ourselves equal or close to
the Swedish Tax Structure - AND without enjoying the full and free
SWEDISH Government Funded Social Services.
Low Taxation alone does not necessarily boost
entrepreneurship.
It is the Political Environment that does not encumber the
Human
Spirit that will produce human creativity, original
thinking, intellectual daring, and human political and
philosophical development.
Looking at the efforts of the budding Art Scene in Singapore - we
see the artists, actors, writers and movie makers being limited in
their scope of subject matters, media, funding, and
licensing.
In such an environment, can we hope to produce a Spielberg, a Chen
Kaige, an Ang Lee, a Jackie Chan ? Even Singaporean Robert Chow was
ahead of his generation by prospering in the Hong Kong TV
environment.
Can Singapore compare to the private enterprises in Hong Kong,
Korea and Taiwan - even Indonesia and Malaysia - that manufacture
their own products that are household names and grabbed by the
Global Consumers ?
So far, we have Sim Wong Hoo - who have been much featured in the
limelight for his original product - a digital Sound Blaster.
A product which he had to fine-tune and developed further, to be
market first in the USA before it reaches Singapore.
How many others will be like Sim and his Creative Technologies that
will produce a World Class Product - besides being manufacturers of
OEM products in support of 'Bigger Global Players' ?
Can the Singapore Tax environment create a climate that supports
Singaporean's creativity and enterprise, or do we have to change
the Politics and the Political Environment ?
