In another attempt to raise billion$ in revenue, PM Lee wants the public to believe that “raising taxes is inevitable“.
But if the PAP wants to increase revenue by only a couple of billion dollars, taxes need not be raised. This is because today’s ‘happy’ situation was anticipated decades ago and the PAP had already squirreled away billions in land sales revenue for investment every year. Or so we’ve been told.
If properly invested by GIC, Singapore should have more than $300 billion in land sales reserves alone to more than adequately cover tomorrow’s expenditure.
A 6% rate of return generates $18 billion annually. A fraction of this would suffice for additional spending needs.
Singaporeans have also been told that the PAP needed to save for a rainy day. That rainy day has arrived but why is the PAP reluctant to spend what it had saved and invested for the people?
Does PAP intend to lock up our reserves forever? Or has the money been used elsewhere without the President’s knowledge? Maybe lost in lousy investments?
Since 2005, the government has earned $147 billion from land sales alone, excluding returns. Are these and earlier revenue see no touch?
On top of the humongous land sales revenue, the government has also been confiscating about half of CPF members’ returns, partly to supplement the budget. This is a form of taxation.
Assuming what GIC claims is true, ie it earns long-term returns of 6%, and that average CPF interest rate is 3%, the government must have therefore confiscated $12 billion from CPF members last year. (see MAS report statistical index pg 15)
Isn’t the additional $12 billion contribution from CPF members, or even part of it, sufficient to cover rising expenditure?
The media has recently reported and given the impression of better than expected economic growth. Even PM Lee was pleased to announce economic growth could exceed 3% this year.
Doesn’t higher economic growth result in higher revenue for the government and therefore no need for taxes to be raised?
If higher growth – almost double last year’s 1.8% – does not result in higher revenue, then isn’t this growth kind of fake?
Or is ‘growth’ used to justify million-dollar ministerial salaries since higher GDP = higher bonuses?
In the face of economic headwinds and after all the recent cost increases, the government should not raise taxes to make life harder for citizens and businesses.
After all, PAP has already planned decades ago to use part of the hundreds of billions squirreled away in land sales revenue as the population ages.
Not forgetting about $12 billion ‘tax’ paid by CPF members via GIC last year. 😦