Minimum wage threatens survival of small businesses

googoomuck SG

Hundreds of Economists Say:Raise the Minimum Wage

Over 650 economists, including 5 Nobel prize winners and 6 past presidents of the American Economic Association, believe that increasing federal and state minimum wages, with annual cost-of-living adjustments for inflation, can significantly improve the lives of low-income workers and their families, without the adverse effects that critics have claimed.

Joshua1975 SG

Mr. Green

Crying or Very sad too bad they are not my gov. Sad Neutral

spinsugar SG

A minimum wage may not work very well for Singapore right now, especially since a sudden change will not please foreign investors and with current attitudes / lack of graciousness on ALL levels of society.

I foresee one problem arising with non-skilled work - minimum wage set, but non-adhereing employers resisting the change (small businesses in particular).. and MOM having difficulty enforcing it.. It may very well turn into a widespread, ugly race of whoever's cheaper gets the job. I also foresee an increased demand for "FTs" and resentment towards this group for "spoiling the market".

I do not feel that Singapore is ready for such an undertaking at this moment. It is already difficult enough as it is for a worker to have MOM take action against errant employers with the current set of worker "protection" laws.

I do, however, feel that a minimum wage would only work when truly INDEPENDENT workers' unions are in place (without their hands tied). This would ensure real needs are addressed without too much compromise on the part of the worker in favour of the ONE party policies. Empower the workers with rights and an EFFECTIVE avenue to pursue a course of action against errant employers.. THEN have the union/s gradually negotiate minimum wage when there is enough respect for the individual worker. Then it might just work.

As for GST, it's truly ludicrous to justify the increase as a way to help the poor. If the poor were truly meant to be the receipients of such a 'noble' cause, then why tax all across the board? Why not apply the tax increase to luxury goods only?

oxford mushroom SG

The government intends to distribute the additional GST revenue to the poor in the form of various new packages to be announced. Higher pay in relation to minimum wage will go to the worker and his family, not the unemployed.

oxford mushroom SG

Businesses will move their work somewhere else where it is cheaper to operate. CEOs and investors want handsome returns, by all means possible within the law.

If transport companies are not earning profits, they will fire workers. You only have a job if your company is earning money. If your boss can earn more money by hiring a FT, why should he employ you?

oxford mushroom SG

Absolute rubbish! 60% of Singaporeans do not pay income tax and far greater numbers of low income earners in Singapore do not pay income tax compared to many other countries. It does not make sense anyway taxing the low income earners...they earn to little to generate sufficient revenue.

Taxing higher income earners is counterproductive when our main competitor Hong Kong has a lower tax rate. We will only drive investments and jobs in that direction, if we follow the policies of Opposition Party supporters.

The middle income group is the group that tends to get squeezed. If they have marketable skills overseas, more will consider leaving if we tax them too much. That's why indirect taxes like GST is better than ditrect taxes.

I think we should levy more indirect taxes on alcohol, cigarettes and cars. Tobacco and alcohol have a deleterious effect on health and puts a greater burden on the health system. Tax them to high heavens will put them out of the reach of the poor who cannot afford ill health anyway.

kilua SG

Originally posted by spinsugar:

[b]As for GST, it's truly ludicrous to justify the increase as a way to help the poor. If the poor were truly meant to be the receipients of such a 'noble' cause, then why tax all across the board? Why not apply the tax increase to luxury goods only? [/b]

Yeah i think applying more tax on luxury good its a good suggestion too, since the rich have benefited most from the tax reduction. The government has to show fairness and not tax only the middle and lower income group. The luxurious cars should come under higher tax.

the Bear SG

what percentage of the 60% who do not pay income tax actually have an income in the first place?

maurizio13 SG

Please get this through that thick skull of yours!!! Businesses don't rely soley on corporate tax rates to make capital investment decisions!!!

Do you know what is the corporate tax rate in China?

33%!!!

http://www.pwchk.com/home/eng/tax_inf_cn_2006.html

Do you see investments stifling in China?

If businesses just rely on corporate tax rates to make capital investment decisons, you won't see China booming.

Your thought processes are linear and led by a leash.

maurizio13 SG

Rubbish? What do you call GST? Isn't it a tax on the low income earners? It's indirect tax, no matter what it's called, it's still tax.

maurizio13 SG

FYI, the corporate tax rate in India is 33.66%.

If time permits click on the table to see corporate tax rates in the region.
I only see Hong Kong with the lowest corporate tax rate
http://www.kpmg.com/Services/Tax/IntCorp/CTR/

GET THIS THROUGH THAT THICK SKULL OF YOUR'S, MULTINATIONAL COMPANIES DON'T BASE INVESTMENT DECISIONS ON JUST CORPORATE TAX RATES. IT WON'T EVEN MATTER IF YOU LOWER YOUR CORPORATE TAX RATE TO 0%, IN WHICH CASE YOU WILL BE BRANDED A TAX HAVEN AND FIND HORDES OF SHELL COMPANIES RELOCATING HERE.

will4 SG

Local Sporean are not interested to work as hard labour in the first placer n this is the reason labour from neighbouring countries were brought in.

maurizio13 SG

There are alot of non-hard labour (Accounting, IT, Admin, Hotels, etc.) which are taken up by non-Singaporean.

dragg SG

most accounts clerks are malaysians.

ditzy SG

My finance manager is a malaysian. Laughing

dragg SG

my former operations manager was a malaysian PR.

will4 SG

If I am not wrong, there is a quota imposed by MOM to hire foreigners unless they are Spore PR. I also a PR n served NS. Hotel is definitely mainly

occupied by foreigners as local bnever liked to do shift work. IT is being handled by Indian nationals.

I-like-flings(m) SG

hannor hannor.. if sg government can save more money by hiring FT, why should they employ our elite?.... should we email Mr bush and ask if he is interested in our PM job? Laughing

sgdiehard SG

Hard to accept this. Government can increase personal income tax for the higher wage earner (but obviously they don't want to annoy those rich ones, including the ministers), they can also increase taxes and duties for the luxuries items, why should they choose to collect more first from ALL, then redistribute to the poor the way they define? do the poor families need to apply, need to justify how poor they are? Mad

I see no justification for any increase at all, UNLESS the government exempt the essential household items from GST.

oxford mushroom SG

Originally posted by maurizio13:

[b]Please get this through that thick skull of yours!!! Businesses don't rely soley on corporate tax rates to make capital investment decisions!!!

Do you know what is the corporate tax rate in China?

33%!!!

http://www.pwchk.com/home/eng/tax_inf_cn_2006.html

Do you see investments stifling in China?[/b]

Haha...dig your grave further and show off your ignorance. Either that or you have 'conveniently' forgot to inform readers that China has very generous tax incentives for foreign businesses:

"Tax holiday for all manufacturing Foreign Investment Enterprises "FIEs" - a two-year exemption followed by 50% reduction in tax rate for three years, starting from the first profitable year after utilizing tax losses; 15% tax rate in Special Economic Zones; 24% tax rate in certain coastal cities; Foreign investor reinvesting its share of profits for at least five years gets a 40% refund of tax paid on sum reinvested or 100% if reinvestment in advanced technology industries or export oriented enterprises."

(http://www.pwchk.com/home/eng/tax_inf_cn_2006.html)

As for India, read this:

"According to a study released last week by PricewaterhouseCoopers and the World Bank, the real burden of corporate tax in India, after companies take advantage of the relief granted by law, is 14.3 percent of pretax profit. That is less than the 17.7 percent in China and 22.4 percent in Brazil.

Among the so-called BRIC economies - Brazil, Russia, India and China - only Russia has a lower effective corporate-profit tax rate of 12.7 percent."

(http://www.iht.com/articles/2006/11/13/bloomberg/sxmuk.php)

tsk tsk tsk....check your facts before you shoot yourself in the foot Mr. Green

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