Progressive property taxes towards the alleviation of poverty.

sunzoner wrote:

Original thread: Luxury in Singapore taxed less than food and water...why?
I guess the title was amended after tqx made his comments.
However, cherry6 should note that offering a property at one price, doesnt mean a person can sell it at that particular price. Otherwise, I can retire liao.

Cosmetic change only, meaning remains unchanged.

The intention to harmonize property taxes with GST rate would be

1. Asset redistribution policy to counter balance growing income disparity.
2. As a good, both the 'annual value' (AV) of a property, food and water may be considered services and consumables that are consumed over time. Since basic necessities are unwaveringly taxed at a flat rate of 7%, there is no logical reason why, but for cronyism and bigotry that a discretionary consumable such as the AV should be taxed at a rate lesser than that for basic necessities on which tax the poor in Singapore are subjected to.
3. Singapore must not be place where the taxes of the poor subsidize the decadence of the rich- luxury has its price and property in Singapore ought be price correctly.
4. Foreigners using SG properties for investment/ speculation, falsely reporting vacant properties as 'owner occupied' will no longer enjoy reduced property taxes and as such be encouraged to rent them out to compensate for the increase taxation. The consequence of greater availability of properties for sale/ rent will surely correct property prices since the inefficiency of having empty (holiday) properties would be greatly reduced.
5. Singaporeans will know that besides $400 monthly allowance, their NS also pays dividends since they can be assured that a portion of Singapore property taxes collected from rich Singaporean and foreigners will be re-channeled as a form of allowance dividends that would help offset the living costs of ALL Singaporeans (and some PRs too).
6. I have never heard of IRAS checking upon the passports of foreign owners of properties here to see if owner occupants really stay for at least 183 days each year- exploiters of this loophole will see this loophole closed.
7. Charging the claimed 10% for tenanted properties, whilst disadvantaging owners of vacant/ tenanted properties also causes distortions to the property rental market by artificially inflating rental prices. It is highly suspect that higher rentals also inflate property prices thus causing widespread distortions in property prices in Singapore. These negative distortions are man-made, unnecessary and have no place in a mature economy.
8. Re-channeling property tax dividends to all Singaporeans would also subsidies those unable to own properties in the rental of their properties. This can also apply to the dividends from the charging of GST, for any increases in GST, it is also suggested that tax dividends collected be recirculated back to society in such an equal, fair and transparent manner, both property tax and GST in tandem can then be adjusted to obtain the optimal amount of consumption for the optimal number of members in a given society.
9. Whilst some rich might currently care for the poorer in society for purely altruistic reasons, ALL rich will now have added impetus to care for the poor i society knowing that their an across the board GST increase would also encompass their luxurious properties should poverty remain unattended within society.
10. I'm not asking for zero poverty by a substantive and equitable reduction of such. Whilst all persons receive such dividends, there shall be restrictions to the use of such through the CPF system: e.g. for the payment of one's property tax (using current dividend only, not dividend savings), education (accredited national institutions), jobless/ under employment cash benefits (annual limit), healthcare (annual limit), accredited self improvement courses at CC etc etc.

Just my 2c about how taxation can alleviate poverty and achieve better taxation accountability to all Singaporeans (/the poorer ones at least).


Rgds
C6.
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09May2012: Property in Singapore taxed less than food and water...why?