01 March 2011

The PAP clown show continues! (GST edition)

This is not your reading for the week. We are suspending your readings for this week and indeed for many months to come. That is because we are in Silly Season. Very Silly Season

The headlines say it all:
PAP MPs question who WP is trying to help
Cutting GST to tackle inflation would benefit rich more than poor, they say


PAP MPs on Monday hit back at Workers' Party chief Low Thia Khiang's broad-ranging attack on the Government's Budget. At least seven MPs from the ruling party stood up to disagree, as they questioned his call for GST cuts...

Mr Christopher de Souza (PAP-Holland Bukit Timah) and Prof Koo Tsai Kee (PAP-Tanjong Pagar) said that trimming GST would be more beneficial to the rich than to the poor

Said Mr de Souza: "High income earners, we know, consume more and therefore pay more GST."

In 2008, finance minister Tharman Shammugaratnam (PAP-Jurong) said that in absolute terms, the bottom 60% of earners here pay less than 25% of the total GST collected each year.

We can only come to one of two conclusions. Singapore is run by

1. A bunch of economic illiterates who don't bother to pick up any econs textbook, which will tell them a consumption tax (i.e. the GST) is a regressive tax.

2. A bunch of glib discombobulators who know that the GST is a regressive tax but refuse to acknowledge it as such. Instead, they work on the assumption that the electorate is composed of economic illiterates.

Finance minister Tharman Shammugaratnam will distract you by talking about absolute terms. He hopes you won't realise that no matter what the bottom 60% pay for their GST, they're still paying proportionately more out of their total income than the top 40%.

Christopher de Souza will distract you by saying the rich spend more and therefore pay more total GST. He hopes you won't realise that the rich spend a lower proportion of their income on consumption - and have a higher proportion of their income in savings - than the poor.

Prof Koo Tsai Kee will distract you by saying that the tax pool gets redistributed disproportionately to the lower income earners in the form of GST credits. He hopes you won't realise that he just conceded the inherent regressiveness of the tax, and that it requires annual government handouts (aka GST credits) to redress the balance or appear to redress it.

The PAP continues to run a clown show.

Whether they are economic illiterates or glib discombobulators, I recommend that the following current MPs be dropped from the PAP slate for the coming elections, and that if reselected to run, the electorate vote against such clowns:

Mr Christopher de Souza (PAP-Holland Bukit Timah)
Prof Koo Tsai Kee (PAP-Tanjong Pagar)
Tharman Shammugaratnam (PAP-Jurong)

Stupidity and disingenuity must never be rewarded.


Kaffein said...

Ultimate spin?

"GST increase is to help the poor"

Same joker who said, "The redrawing of the boundaries is to help the opposition."

My toes are laughing. Seriously. I think I cracked a toenail.


Alan Wong said...

And on the other hand, they goes round boasting that a large majority of the citizens actually pays no income tax, forgetting the fact that GST is another form of tax.

You know, our PAP leaders are not known to be cunning for no reason.

Anonymous said...

And they pay themselves million dollar salaries. But then they are clowns ruling a bunch of idiots who enjoy the comedy.