Budget 2015 - Be mindful of slippery slope

Monday, 9 March 2015

THE STRAITS TIMES
FORUM LETTER

Be mindful of slippery slope

Published on Mar 7, 2015 1:09 AM

WHILE I agree that steps should be taken to help the needy and poorest elderly, as intended by this year's Budget, funding the increased spending by taxing the top 5 per cent of earners and using our reserves are worrying choices.

The top 5 per cent of earners are the most mobile; if they feel that the taxation system is unfairly punishing those who have worked hard and been successful, it is not difficult for them to leave for another country.

This has happened in many European countries, which impose high tax rates on their top earners.

Would it not be better to have a scheme where top earners can voluntarily contribute substantial sums and receive tax incentives and other benefits?

Getting their buy-in to such a scheme would generate better goodwill (and maybe more substantial contributions) than a tax hike.

Using the reserves to hand out "goodies" when there is no emergency seems imprudent.

Human beings are rarely satisfied by whatever good things they have. There will always be demands for more handouts.

The Pioneer Generation Package is a fine example. It is meant to recognise our pioneers' contributions to nation building, but many younger Singaporeans were soon calling for the scheme to be extended to the next cohort.

The first time we break the piggy bank, the psychological barrier is removed and it becomes easier each time to raid the next piggy bank.

Agnes Sng (Ms)