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Thread: Interesting figures relating to The GST Increase

  1. #1

    Default Interesting figures relating to The GST Increase

    Disclaimer: Fwd to me by a friend through email, I cannot verify accuracy of figures. Maybe some auditor here would help?

    Example 1
    In 2006, if after rebates etc and your net taxable income is $60,000, the
    income tax you need to pay is $2,700 (8.75%). If you spend $800 a month on
    needed goods and services, the GST paid for 5% will be $480 Total=$3,180 in
    Tax paid.

    In 2007, if after rebates etc and your net taxable income is $60,000, the
    income tax you need to pay is $2,600 (8.50%). If you spend $800 a month on
    needed goods and services, the GST paid for 7% will be $672 Total=$3,272 in
    Tax paid.


    From $3,180 to $3,272, the effective increase is 2.89%.


    Example 2
    In 2006, if after rebates etc and your net taxable income is $400,000, the
    income tax you need to pay is $61,650 (21%). If you spend $4,000 a month on
    needed goods and services, the GST paid for 5% will be $2,400 Total=$64,050
    in Tax paid.

    In 2007, if after rebates etc and your net taxable income is $400,000, the
    income tax you need to pay is $58,700 (20%). If you spend $4,000 a month on
    needed goods and services, the GST paid for 7% will be $3,360 Total=$62,060
    in Tax paid.


    From $64,050 to $62,060, the effective decrease is -3.11%.



    Example 3
    In 2006, if after rebates etc and your net taxable income is $25,000, the
    income tax you need to pay is $187.50 (3.75%). If you spend $800 a month on
    needed goods and services, the GST paid for 5% will be $480 Total=$667.50
    in Tax paid.

    In 2007, if after rebates etc and your net taxable income is $25,000, the
    income tax you need to pay is $175 (3.5%). If you spend $800 a month on
    needed goods and services, the GST paid for 7% will be $672 Total=$847 in
    Tax paid.


    From $667.50 to $847, the effective increase is 26.89%.

  2. #2
    Member Static's Avatar
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    Default Re: Interesting figures relating to The GST Increase



    Ayio, What is tax in Singapore compared to other countries, didn't u read SUNDAY TIMES ? >>


    Journalism is dead in singapore...

    There is no debate, challenge or analysis or watsoever to such issue ...

    But I am convinced..

    I must NOT BBB

    Tax increase is to discourage ppl from spending on luxury items (tot spending is critical in driving the economy as well ?)

    The 2% increase will be well spent on building safety net for the poor.

    I can expect medical bills to plunge down

    The future is bright after the GST increase. Pls dun whine and move on.

    陳綺貞 2010 [夏季練習曲] 巡迴演唱會 Cheer Concert 13 Nov 2010 MAX Pavilion@Singapore Expo

  3. #3

    Default Re: Interesting figures relating to The GST Increase

    hi... actually no need all these numbers...

    if income tax is lower, the more you earn, the more you benefit cos er... you have more income
    if gst is higher, the less you earn, the worse you kena, cos the bigger percentage of your income is spent on "needed goods and services"

    combine the two together, sure is the poorer people who are most badly affected.

    the govt is saying that
    a) lowered income and corporate taxes make sg more competitive and will keep the economy in better state, meaning better job situation etc than if tax stayed the same
    b) money collected from gst increase will be redistributed to the poor

    so actually the question we should be asking is, will a) and b) have enough positive impact on the life of poorer singaporeans to make up for what they lose out for with the new taxes
    Black lens, white Lens, can take picture is a Good lens

  4. #4
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    Default Re: Interesting figures relating to The GST Increase

    Quote Originally Posted by Static View Post
    The 2% increase will be well spent on building safety net for the poor.

    u really believe this??

  5. #5

    Default Re: Interesting figures relating to The GST Increase

    if you earn $40,000 per year $33 333, monthly, will you only spend $4000 on stuff monthly?

  6. #6
    Moderator ortega's Avatar
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    Default Re: Interesting figures relating to The GST Increase

    Quote Originally Posted by Belle&Sebastain View Post
    if you earn $40,000 per year $33 333, monthly, will you only spend $4000 on stuff monthly?
    you are missing 1 zero

  7. #7

    Default Re: Interesting figures relating to The GST Increase

    Quote Originally Posted by ortega View Post
    you are missing 1 zero
    oops, yes ,its $400,000 how will one only spend $4000 monthly unless you really squeeze. those ultra rich ppl, cars one month already about $1500- $2500. maid already $1k++

  8. #8
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    Default Re: Interesting figures relating to The GST Increase

    in the end..who is to pay to help the poor?
    Confidence is thinking you'll be Champions, arrogance is stating it.

  9. #9
    Moderator ortega's Avatar
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    Default Re: Interesting figures relating to The GST Increase

    what else is new

    it is always the middle ground that supports the country

  10. #10
    Moderator Clown's Avatar
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    Default Re: Interesting figures relating to The GST Increase

    aiya, horses need to eat simple things like hay and water to survive.
    sigh.

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