America is suffering a big budget deficit. It is not collecting enough taxes to pay for the cost of government and the social programs. The deficit is partly due to the weak economy, which reduces the tax revenue and the cost of the economic stimulus.to boost the economy.
An important contributing factor (which the Obama Administration is now targeting) is the tax avoidance by American companies which use a variety of ways to avoid tax, using "tax vehicles" and taking advantage of tax loopholes. They shift their profits to countries with low tax rate, including Singapore.
By reducing our income tax rates to attract these companies, Singapore has to introduce the Goods & Services Tax to make up this shortfall. It has its other negative consequences for the people and for the cost of doing business. GST is another layer of tax and is wasteful and costly to administer.
America and other developed countries are taking action on the tax avoidance. While Singapore will lose its value as a tax hub, I believe that it is better to have a fairer world, and countries do not try to compete on offering "tax incentives" to businesses to reduce or avoid paying tax.
I hope that Singapore can go back to the days of higher income tax and removal of the wasteful Goods & Services Tax (GST)
Tan Kin Lian
- ► 2013 (307)
- ► 2012 (1270)
- ► 2011 (1873)
01/31 - 02/07
- Tricks by property agents
- 15% discount at Internet Shop
- Seek compensation for losses on the credit linked ...
- Residual values of credit linked notes
- Strategy to pick the right stocks - low PE and hig...
- Fighting rejected health claims
- Practice to pick the right stocks
- Palindrome - the Lost Generation
- Medan is a nice city with nice people
- Rechargeable torchlight - 15% discount
- Seminar on class action
- Immoral profit
- A positive approach towards taxation
- GST is a costly exercise
- Need for a minimum wage policy
- High Notes 5
- Financial institution benefited from the settlemen...
- Pinnacle and Jubilee Notes
- Voting in general elections - survey results
- Voting in the general election
- Overcharging by lawyer
- The Growing Underclass - Jobs Gone Forever
- Improve productivity in Singapore
- Rechargeable lamp (with locator) - delivery $1
- Calculate the rate of interest
- Minibond Payout
- Class action in America
- Two casinos
- Interest payable on loans
- FISCA - Member's benefits
- Good response for Financial Planning book
- Practical suggestions to improve a call center
- Practical ideas to improve a corporate website
- Social services and taxation
- Order for Financial Planning book
- Help the singles with affordable housing
- Crackdown on Tax Avoidance
- What the General Election is about
- Filing my first GST return
- ST Online Forum: Hit hard by insurance policy term...
- Car loan for 60 months
- Adopt a consistent approach
- Foreign currency payments on credit cards
- Football on Pay TV
- Bubble in commodity funds
- Lessons from Canada about banking
- Pricing of HDB flats and subsidy
- Political risks in Asia
- Personal savings
- Cash loan - 16% effective rate
- Creating productive employment
- GST - who benefits and who loses?
- GST is wasteful
- Character building
- Improve your negotiating power
- Practical Guide on Financial Planning - book avail...
- Pressure to develop the financial market
- Low cost housing - a model for economic developmen...
- Universal coverage for health care
- Small country can find its niche
- ▼ 01/31 - 02/07 (62)
- ► 2009 (1655)
- ► 2008 (2105)
- ► 2007 (1803)
- ► 2006 (696)
- ► 2005 (159)