Sunday, February 7, 2010

Pricing of HDB flats (2)

Here is the updated survey results based on 135 responses. The results are almost identical to the previous report based on 97 responses.

Taxation and social benefits (2)

Here are the survey results. It is based on 18 replies, which is insufficient to give a representative view.

Changes to Wage Income Supplement

The minister for manpower is making some changes to the Wage Income Supplement, a scheme to help supplement the wages of low income workers. He has identified four obstacles on why low income workers are not attending courses to upgrade their skills.

This is an example of a scheme that is not working well, as it does not address the root of the problem and is not practical.

A better approach is to set a minimum wage, without the need to attend courses (which are also costly and not so useful). Many of the low wage earners know how to do their work and do not need to attend courses, as they can learn on the job.

If the workers are paid a decent wage, they will not have to work long hours to earn enough, and this will allow them time to attend upgrading courses. Many people will want to upgrade their knowledge and skills, if they find it really useful to their job. (There are some exceptions, but they have to be dealt with separately).

Another example of a scheme that is not working well is the baby bonus, which does not help to address the decline in our birth rate during the past two decades.

Tan Kin Lian

Voting in General Election - (3)

Here is the updated survey results based on 139 replies. The results are above the same as the earlier report based on 97 replies. No significant change.

Pay decent minimum wage

Who wrote this statement? Do you agree with it?

Quote
Paying indecently low wages in high-cost Singapore not only dehumanises our workers, it also creates insecurity among the workforce. A wage structure that is out of kilter with productivity is inimical to long-term growth. Paying workers $3 and ministers $1,000 for an hour's work is not "market forces" - it is exploitation at its ugliest.


Legislating minimum wage for the lowest of the low-skilled employee will ensure tht workers will not be exploited. This amount must be commensurate with the cost of living in Singapore. At the moment, many of the working poor are not paid decent wages, making life for them a grinding misery. If the trend of income disparity continues to widen, society will be rendered asunder as inequality takes its toll. Not only will minimum wage legislation help to avert this crisis, it will also guarantee thta prosperity is shared by all.
Unquote

Click here to find the source of this quote.

Moderation in my blog

There are some people who do not post sincere comments but have the sole purpose of causing mischief in my blog. They use a fake name or post anonymously. I have to block these comments.

Comments that differ from my views are not blocked, if they are posted sincerely. There is no need for these comments to pass judgement on my views or attack my views. They can state their views objectively.

If you feel that your comments have been blocked unfairly, you can send an e-mail to me at kinlian@gmail.com. By showing your identity, you indicate that you are sincere and not mischievous.

A positive approach towards taxation (2)

I have updated my paper to show the flat rate tax that is needed in Singapore to meet the current level of Government expenditure.

Tax revenue as % of GDP

I obtained the following figures from Wikipedia.


Tax as % of GDP
Country
Tax %
Denmark
49.1%
France
44.2%
Germany
39.3%
UK
37.4%
New Zealand
36.0%
Canada
33.3%
Australia
30.6%
USA
28.3%
Japan
27.9%
China (PRC)
17.1%
Malaysia
15.5%
Philippines
14.4%
Thailand
13.0%
Singapore
13.0%
Hong Kong
12.8%
Indonesia
11.0%

It seems that the first world countries have a ratio above 25%. Even the USA, has a tax rate of 28.3%. Singapore has one of the lowest tax rates and competes with Hong Kong and Indonesia. The tax rate is lower than the Asean countries. Perhaps, the tax rate of Singapore and Hong Kong is distorted as a large part of the revenue comes from land sale, which is probably not counted here.

A higher tax rate means that more social services are provided, such as health care, welfare and financial security, as is the case in the first world countries.


Another survey by International Living showed that the countries with a higher quality of life score are those in Europe and other first world countries. It seems that this is correlated with higher tax rate.

I am in favor of higher tax rates to provide more social services, following the example of first world countires. It will also help to narrow the gap between high and lower income earners. Read my views here.

Tan Kin Lian

Practical Guide to Financial Planning - a gift

One customer bought 30 copies of the book to use as a gift to her friends. She found it to be very easy to read and useful. Another customer 10 books to be used in the same manner. You can order the books here. If you wish to buy 10 books or more, send an e-mail to kinlian@gmail.com to get a special price.