I have been trying not to gripe about the increase in the GST (Goods and Services Tax) from 5% to 7% since Tuesday. But not griping here in this blog means that I talk incessantly about the tax increase to my friends, which isn't very pleasant for them, because they can't walk away from me in mid-conversation without offending me, while you can easily do so with absolutely no consequences. Just click on that little "x" button. :)
Just so that I can be a better dinner companion, I'm going to have to say what I have to say here:
WHATEVER HAPPENED TO 6%?? and
WHAT KIND OF A BULL EXCUSE IS IT TO SAY THAT YOU ARE RAISING TAXES TO HELP THE POOR??
Okay, I feel better now.
The GST is the kind of tax that pinches the lower-income more than the higher. For example, you buy rice, oil, meat, vegetables, fruits, detergent, and other daily necessities from your local grocery store and your bill comes up to $100. When the GST goes up to 7%, you will pay $7 in taxes. If you earn $1000, $7 is 0.7% of your income. If you earn $10,000, and you buy that same bag of groceries, you pay a GST that is only 0.07% of your income.
So it is a little ironical to say that we are implementing this tax to help the lower income, is it not?
Of course the scenario above is too idealistic. In the real world, those with more money usually spend more and hence are taxed more. Also, there is the income tax which taxes the higher income earners more than the low -- ironically, the government wants to lower the income tax percentage for the highest income earners in the bid to attract more business to our sunny island state, hence skewing it against the poor that little bit more.
On the whole, we have low taxes and a good government that gives back to her people through spending in infrastructure, education, etc. So it is not like I'm pretending that I know how to run this place better. Just be more frank with us, can? And whatever happened to 6%?
(Some ideas I have: make certain necessities such as plain rice, salt, white bread, water GST-exempt. Actually, come to think about it, that is the only idea I have.)
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