Grace Fu's talk on GST and National Development
-
Informative, she's quite neutral, but on sensitive issues, she's quite defensive.
First she talks about 3G - Globalization, Gap (widening income gap) and GST.
Globalization
First, she acknowledges that globalization has been around all the time. Westerners moved to Asia to look for spices, raw materials, etc. Easterners moved around the globe to look for better opportunities. That's the past.
In today's world, it's in the sense of culture, information. Culture as in globalization opens up lots of opportunities, bringing in people from different countries and their cultures. In terms of information, we are exchanging more information than ever via the Internet.
Gap
With globalization, it not only opens up the world of opportunities to us, but also to the world. MNCs relocate their production centres to cheaper countries such as India and China, tap on top local talent to manage the regional activities.
This forces manual, labour-intensive jobs salaries to go lower as China and India counterparts can do more with lesser pay. But this is the reverse for local talents. MNCs hire them because we know the region well, can speak English and are hardworking. This pushes their salaries up, which causes the widening incoming gap.
GST
This part is interesting and I almost got brainwashed.
She talks about how GST is linked to globalization. You will never realize this link. It's got to do with corporate taxes. Due to globalization, the world has become a more competitive place to live in. To attract companies here, we have to lower corporate taxes.
However, lower corporate taxes means lesser revenue. So where do they make it up? GST.
This is where I nearly fell for the trap. I was there thinking, if something goes down, something must go up. I agreed with her.
But the more she goes on, the more I disagree. The Q&A session actually reveals why they increase the GST, thanks to one student who quoted a 13th century economic theory.
The theory goes something like this: if increased taxes affects necessities, it will reduce revenues as citizens won't be motivated to spend. (I think so, I don't understand what the heck the student is saying, he's stumbling over his words)
And our dear minister's answer:
Reduced taxes doesn't mean increased revenues. Rather, it means a reduction in budget. Take for example corporate taxes. From 35% to 30%, it's a 5% drop, which is a lot, considering that corporations do earn a decent amount.
Now, how does the GST impact? Consider a worker earning $5000. The GST increase probably only reduced his monthly savings. At the most, his spendings will eat into his savings.
Now look at a worker who earns $1000. Already, he doesn't have much savings, he has to tighten his budget and spend within the $1000 he earns. With GST help package, it actually gives $300 to $400 to his monthly spendings. (I'm very confused on this part, don't ask me)
From the above two paragraphs, it seems like the government has made a very bad assumption, it assumes that citizens will still spend as usual.
Continued in the next post... -
The minister is correct. Let's hope they deliver their promises and give us 1000$/mth workers that extra 300$/mth.
-
Originally posted by ndmmxiaomayi:
The govt made the correct assumption IMO...People would be tempted to spend their GST payout almost immediately...
From the above two paragraphs, it seems like the government has made a very bad assumption, it assumes that citizens will still spend as usual.
[/b] -
Then she answered on the GST increase. Why isn't there a system like luxury tax, necessities tax, etc?
Her argument is because it blurs the lines. What defines a luxurious good? What defines a necessity? What defines this? What defines that?
Generally, while one would agree that names like Gucci, Prada are luxurious goods, how about goods like Nokia, Samsung? They are so common. Should they be classified as luxury goods? Or just normal goods? Another common sense answer is what is luxurious to you may not be luxurious to another.
So the government decided to apply the increase across the board.
She gave examples on Ireland and England.
Next question is about the top civil servants' salaries increase.
This answer is damn zai. I like. Again, it relates to globalization. And the yada yada reasons, so they benchmark themselves against the private sector and gave themselves the increase.
Also reminded the crowd that during bad economical period, they had taken a pay decrease, with no changes within the past 6 years. So this year's increase sort of justified it.
Then the national development... turning Bugis into some entertainment centre, which looks like a night club to me.
-
I don't know, that's what I understood. The GST package thingy is so confusing.Originally posted by Skibi:The minister is correct. Let's hope they deliver their promises and give us 1000$/mth workers that extra 300$/mth. -
Why they wanna increase pay ? If they think they are so attracted by other top-jobs , why do they even want to allow themselves to stand for GE ? They are not bounded by moral obligations to do the job...Furthermore , they are earning double salaries now ...It is a little known fact that they are actually still working in their previous jobs,but dunno active or not la...Originally posted by ndmmxiaomayi:Then she answered on the GST increase. Why isn't there a system like luxury tax, necessities tax, etc?
Her argument is because it blurs the lines. What defines a luxurious good? What defines a necessity? What defines this? What defines that?
Generally, while one would agree that names like Gucci, Prada are luxurious goods, how about goods like Nokia, Samsung? They are so common. Should they be classified as luxury goods? Or just normal goods? Another common sense answer is what is luxurious to you may not be luxurious to another.
So the government decided to apply the increase across the board.
She gave examples on Ireland and England.
Next question is about the top civil servants' salaries increase.
This answer is damn zai. I like. Again, it relates to globalization. And the yada yada reasons, so they benchmark themselves against the private sector and gave themselves the increase.
Also reminded the crowd that during bad economical period, they had taken a pay decrease, with no changes within the past 6 years. So this year's increase sort of justified it.
Then the national development... turning Bugis into some entertainment centre, which looks like a night club to me. -
Globalization forces labour-intensive wages down, but pushes knowledge-driven jobs wages up.Originally posted by Trump_Card:Why they wanna increase pay ? If they think they are so attracted by other top-jobs , why do they even want to allow themselves to stand for GE ? They are not bounded by moral obligations to do the job...Furthermore , they are earning double salaries now ...It is a little known fact that they are actually still working in their previous jobs,but dunno active or not la...
Theirs, I supposed belonged to the latter, so it justified the increase. -
Originally posted by ndmmxiaomayi:
Basically the idea Grace is trying to put across is that the gov is trying to close the income gap in two ways.
I don't know, that's what I understood. The GST package thingy is so confusing.
1. Tax the rich more.
A 5000$/mth earner will probably spend more money thus paying more GST. At the same time he will not get any GST credits.
2. Give money to the poor in the form of GST credits.
A 1000$/mth earner will spend less and pay less GST. At the same time he will get GST credits of 300$ to boost his lower income.
Think of it as taking money from the rich to give to the poor.
But the logic for increasing the ministers salary... is *ahem*. -
It's true that globalization force labour-intensive wages down and pushes knowledge-driven job wages up ....Originally posted by ndmmxiaomayi:Globalization forces labour-intensive wages down, but pushes knowledge-driven jobs wages up.
Theirs, I supposed belonged to the latter, so it justified the increase.
You jus simply believe them when they say so arh ? Their pay are alrdy the highest in the world and they want to increase some more based on this ? They should use other ministers' pay as benchmark ma...
All these are excuses...You got brainwashed and it perfectly serves their purpose... -
I never believed, I nearly fell for it, that's all. I think I regretted going. I'm near the complete stage of brainwashing.Originally posted by Trump_Card:It's true that globalization force labour-intensive wages down and pushes knowledge-driven job wages up ....
You jus simply believe them when they say so arh ? Their pay are alrdy the highest in the world and they want to increase some more based on this ? They should use other ministers' pay as benchmark ma...
All these are excuses...You got brainwashed and it perfectly serves their purpose... -
She never said explicitly, I merely interpreted her words.Originally posted by Skibi:But the logic for increasing the ministers salary... is *ahem*. -
Remember, they are picked because of their lip-power.Originally posted by ndmmxiaomayi:I never believed, I nearly fell for it, that's all. I think I regretted going. I'm near the complete stage of brainwashing.
You need to go listen to some opposition party talk to get back to normal. -
Got any CE points given ? I guess u're there just for the sake of the points ....Originally posted by ndmmxiaomayi:I never believed, I nearly fell for it, that's all. I think I regretted going. I'm near the complete stage of brainwashing.
-
Yeah... I'm going to hang around Speakers' Corner more often.Originally posted by CoolMyth:Remember, they are picked because of their lip-power.
You need to go listen to some opposition party talk to get back to normal. -
Not for the CE points, but just for the sake of listening to the PAP logic. Her talk isn't very exciting you know. I nearly fell asleep until those warp logic woke me up.Originally posted by Trump_Card:Got any CE points given ? I guess u're there just for the sake of the points .... -
Finally recalled one more point that she brought up. Her thinking was exactly the same as LKY, but not in his words.
We don't go for popularity votes, but for the best interest of Singaporeans... something like that. And that's what justified the GST increase and top civil servants' pay rise.
Because somebody brought up the issue if the Government purposely rise so many things, won't they afraid that the citizens vote against them? And the above paragraph basically shows that they aren't threatened by us, they are very confident that we will vote for them.
Maybe she's right... she came prepared, even if she knew the party felt threatened, her face revealed none of this. -
Where you there?
I was beside the Mic which drop down leh.
My first reaction was -___-" It's slowly dropping, slowly dropping, and finally drop! -
Her talk okok lor. I like those picture lah.. hmM~Originally posted by ndmmxiaomayi:Not for the CE points, but just for the sake of listening to the PAP logic. Her talk isn't very exciting you know. I nearly fell asleep until those warp logic woke me up.
Yeah. same reasons for going. -
Her introduction hor very funny leh.. When got speaker intro till his/her children de..
-
I think mayi will have a lot to write for the RJ. Lolx, I am still think what to write. By the way mayi jie, what's the deadline ar?
-
At the back. Near the door.Originally posted by Darkness_hacker99:Where you there?
I was beside the Mic which drop down leh.
My first reaction was -___-" It's slowly dropping, slowly dropping, and finally drop!
The mic is funny lor...
Anyway, she is very kan cheong. Not even 12.30pm the thing starts liao. Very efficient indeed, or is her watch moving at ultra fast pace? -
She says she knows about presentation, that if presentation is too boring, will not interest people. So talk some crap first.Originally posted by Darkness_hacker99:Her introduction hor very funny leh.. When got speaker intro till his/her children de..
Idiot lah, I fall asleep when she starts talking crap.
But good in a way. She was actually moving in step-by-step to engage our minds, which is why I say I'm near the complete stage of brainwashing. -
I was not brain washed.Originally posted by ndmmxiaomayi:I never believed, I nearly fell for it, that's all. I think I regretted going. I'm near the complete stage of brainwashing. -
Next Monday 11.59pmOriginally posted by Darkness_hacker99:I think mayi will have a lot to write for the RJ. Lolx, I am still think what to write. By the way mayi jie, what's the deadline ar? -
Originally posted by ndmmxiaomayi:Next Monday 11.59pm
I gonna do it tonight.