When they raised GST, the income tax was lowered. In fact, I remember reading that many Singaporeans DO NOT have to pay income tax.
i'm abit SLOW, but nvm, there is something interesting about this. income is taxed no matter how an individual chooses to use it. GST however taxes goods and services that he consumes. and all people consume roughly the same amount of basic necessities.
in simple layman's english, rich people don't eat 10 bowls of rice per meal because they are rich.
this is why the richer you get, the more you save (savings). on the other hand, the poorer you get, the more you will start digging out of your own savings (dissavings).
when the government paid growth dividends and gst bonuses, most singaporeans used it to offset their bills. this shows that singaporeans are consuming beyond what their income allows, and are in debt (car, mortgage, utilites etc)
the income tax system in singapore is progressive, if say it is cut across the board, then middle and high income earners will benefit.
however, an increase in GST will affect lower and middle income earners, because they would consume the same basic neccessities as high income earners do. GST taxes these basic neccessities.
another simple example, if everyone one needs $200 simply to survive, what does that $200 mean to someone who is poor compared to someone who is rich? the same dollar is valued differently by people of different income groups.
conclusion: rich people benefit
it so happens that: ministers are rich
ministers form the government
the government implemented this policy
rgding to the topic. in my opinion. i think the ministers' paychecks are justified. as they have indeed done their jobs quite well. and led singapore into further development which in turn benefits the country.in all these years.
why of course, i'm sure that someone else
couldn't have done the same job for lesser pay, and i'm sure that if the same people that form the government today were not there, other people
couldn't have done equally as good a job. and of course, everything that has been achieved by this country is the
best possible outcome and is the fullest of our country's potential.
and most importantly, the success of this country is built single handedly by the GOVERNMENT, and not WE, THE PEOPLE, who finance everything the government does with taxes, no matter who we vote for during the elections.
since we like to regard our government as a profit making institution i.e. company, lets use a corporate analogy;
Q: if your boss gets fired, does your company collapse?
A: no. someone else will do his job.
could it have been worse if this were done differently? maybe. we don't know.
but it would be WRONG to say that it could NOT have been BETTER