Interesting figures relating to The GST Increase


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Aug 16, 2005
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#1
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%.
 

Static

New Member
Jul 5, 2006
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Surfing soft porn in CS
#2
:bsmilie:

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 ... :bheart:

But I am convinced..

I must NOT BBB

Tax increase is to discourage ppl from spending on luxury items :think: (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.

:cry:
 

pai

New Member
Nov 24, 2004
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#3
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
 

akane

New Member
Jun 4, 2003
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#8
in the end..who is to pay to help the poor? ;)
 

Clown

Moderator
Staff member
Mar 24, 2003
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#10
aiya, horses need to eat simple things like hay and water to survive.
 

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