Academics urge political parties to come up with policies that seriously cut income gap

[webfact]

Academics urge political parties to come up with policies that seriously cut income gap

By CHULARAT SAENGPASSA 
THE NATION 

 

 

ECONOMICS LECTURERS are calling on political parties to come up with policies that will curb – if not eradicate – Thailand’s long-entrenched problem of inequality.
 

“Political parties should focus on how to end economic monopolies. Most parts of the Thai economy have been monopolised by a few groups for far too long,” Assoc Professor Nualnoi Treerat, a lecturer from the Chulalongkorn University’s Faculty of Economics, said at a seminar this week.

 

Held at Thammasat University’s Centre for Research on Inequality and Social Policy, the seminar addressed inequality and explored possible solutions. 

 

Asst Professor Duangmanee Laovakul, who teaches at Thammasat’s Faculty of Economics, cited an example of more than 600,000 rai being held by one person, while thousands of farmers remain landless and destitute. 

 

“Of the richest Thais, 10 per cent hold more than 60 per cent of the country’s land that can be occupied,” she pointed out, adding that 20 per cent of the population also owns half of the country’s assets, such as land plots, houses, buildings and automobiles. 

 

In 2015, the average monthly income in Thailand stood at Bt9,409, and when classified by region, those living in the Central region earned the most at Bt12,818 per month. In comparison, those living in southern border provinces, where unrest has been raging for more than a decade, earned just Bt5,725 on average per month. 

 

Nualnoi said this inequality will possibly continue because Thailand’s economic structure has hardly changed in the past three decades. Therefore, she said, it is time for policymakers and political parties to think about how they can improve the distribution of economic benefits in the country. 

 

At the very least, she said, small entrepreneurs should get more benefits, while the country’s land and resources should be shared more fairly. She also urged the state to focus on healthcare and education inequality. 

 

“Gaps in educational and healthcare quality have aggravated inequality,” she pointed out. 

 

 

Jakchai Chomthongdee, advocacy and campaign coordinator at Oxfam Thailand, said statistics showed that 1 per cent of the richest people in the world received 27 per cent of economic benefits. 

 

Very unfair distribution 

 

“Simply put, when there is one extra baht in the market, Bt0.27 of it goes to the 1 per cent richest,” he said, adding that if such trends continued, poverty reduction would take over a century to solve. 

 

He also said that since one-third of the country’s wealth was inherited, policymakers should find a solution by controlling this inherited money. 

 

“Or else, people who are born poor will remain poor all their lives,” he said. 

 

Though the government has imposed inheritance tax, it only has to be paid when the value of the inheritance is worth more than Bt100 million. 

 

“Tax on land and buildings should be waived when the estate is worth less than Bt5 million, not Bt50 million,” she said. 

 

Nualnoi also encouraged decentralisation of power, because it will facilitate a better distribution of resources. 

 

“Don’t worry about corruption. If the people are well informed, they will be able to keep local administrative bodies in check,” she said. 

 

Source: http://www.nationmultimedia.com/detail/national/30359470

 

-- © Copyright The Nation 2018-11-29

[Samui Bodoh]

"...Academics urge political parties to come up with policies that seriously cut income gap..."

 

It is hard to argue with the sentiment, but why are Academics not creating, drafting and proposing policies to achieve their aims? In my native country, often politicians rely on Academics to provide the proverbial 'brain-power' for creating ideas, while the politicians worry about getting elected and legislating.

 

There are several ideas that I have seen utilized in various countries; some form or combination of land tax, inheritance tax, progressive income tax and/or other variations in the tax code will at least make a dent in the problem.

 

In Thailand, where politicians (ALL politicians) are beholden to the super-rich, I suspect it is more political will rather than a lack of policy ideas. Thailand needs to the equivalent of a virulent socialist party to win seats in the legislature to scare the rich into paying their fair share.

 

I shall remain hopeful that one day Thailand will have a fair(er) income distribution system (one day, sigh...), but I ain't holding my breath; it takes political power to enact fairness, and I don't see the proverbial 'establishment' allowing anyone other than themselves to utilize the levers of power any time soon.

 

 

[PatOngo]

2 hours ago, webfact said:

Academics urge political parties to come up with policies that seriously cut income gap

But there's only room at the trough for influential hiso's and their connections!

[YetAnother]

3 hours ago, webfact said:

ECONOMICS LECTURERS are calling on political parties to come up with policies that will curb – if not eradicate – Thailand’s long-entrenched problem of inequality.

only has a prayer of success if there are selfless decision-makers who do not walk down the corruption trail And politicians who act on their promises; Long Odds

[robblok]

Inheritance tax is IMHO a bad tax at least in Western countries forcing those who saved and pay taxes pay again.

Just setup a fair income tax.

Sent from my SM-G955F using Tapatalk

[Lungstib]

From the time they learn to speak Thai kids are indoctrinated into a system that ensures "respect for status" which is nothing more than subservience to wealth. Only social equality can unlock this shackle. As we all know, Thai parliament and politics is a playground for the elite and until ordinary and decent working people get to contribute nothing will change.

[madmitch]

In a country where laws and penal taxation exist to protect monopolies and oligopolies (e.g. the alcohol business) this isn't going to happen.

 

 

[marko kok prong]

Can't see anything changing,in fact the figures indicate that i am giving my wife too much so i will do my part and cut her allowance,let's see now 10 baht a month reduction,i don't want any nasty surprises.

[Baerboxer]

6 hours ago, Samui Bodoh said:

"...Academics urge political parties to come up with policies that seriously cut income gap..."

 

It is hard to argue with the sentiment, but why are Academics not creating, drafting and proposing policies to achieve their aims? In my native country, often politicians rely on Academics to provide the proverbial 'brain-power' for creating ideas, while the politicians worry about getting elected and legislating.

 

There are several ideas that I have seen utilized in various countries; some form or combination of land tax, inheritance tax, progressive income tax and/or other variations in the tax code will at least make a dent in the problem.

 

In Thailand, where politicians (ALL politicians) are beholden to the super-rich, I suspect it is more political will rather than a lack of policy ideas. Thailand needs to the equivalent of a virulent socialist party to win seats in the legislature to scare the rich into paying their fair share.

 

I shall remain hopeful that one day Thailand will have a fair(er) income distribution system (one day, sigh...), but I ain't holding my breath; it takes political power to enact fairness, and I don't see the proverbial 'establishment' allowing anyone other than themselves to utilize the levers of power any time soon.

 

 

 

The issue of income and wealth is a problem in most countries with the gaps between the wealthy and the rest getting bigger and bigger.

 

Taxation, all the various ones you mention, smacks of socialism. Take off the rich and give to the poor to create someone's notion of a "fairer state". Only those doing the taking and giving suddenly become very powerful and as history shows, often become sticky fingered and their families and cronies suddenly become very wealthy. There is also the questions of increased bureaucracy and control, creating non value adding activities and work. 

 

I'd much prefer to see real education provided, free for all, of high quality. The only limit on a persons education should be their own will, ability and desire. Opportunities should be open to all. 

 

 

[Srikcir]

4 hours ago, robblok said:

Inheritance tax is IMHO a bad tax at least in Western countries forcing those who saved and pay taxes pay again.

Thailand's first inheritance tax passed in 2015 and effective in 2016.

Also, a gift tax was also introduced by way of amending the types of tax-exempt income in the Thai Revenue Code and will be effective on the same date as the Inheritance Tax Act.

http://www.nationmultimedia.com/business/Kingdoms-new-inheritance-tax-and-gift-tax-explaine-30267609.html

A major loophole I believe was that both taxes apply only to Thailand "residence" assets that can be identified by authorities through public registrations, licenses, copyrights, stock trades, accounting, etc. As such any offshore assets are not subject to the taxes.

[sammieuk1]

A large part of the income gap is made up with embezzlement leaving the bottom 5-10% without any hope and can be found worldwide ???? 

[connda]

8 hours ago, webfact said:

“Of the richest Thais, 10 per cent hold more than 60 per cent of the country’s land that can be occupied,” she pointed out, adding that 20 per cent of the population also owns half of the country’s assets,

Thailand's still aggrandizes the feudal system and no doubt more than a few wealthy Thais would love to be seen as feudal lords served by free-holder peasants and slaves alike.  "Ahhh, bring back the good old days!"

Remember the dude, Smiling Buffalo Man, who is being tossed into maw of the judicial system for being cheeky enough to crowd-fund the selling 100K THB selling price of his smiling bovine friend?
Well according to Mrs Connda who follows Thai news, the owner of the beast gave Smiling Buffalo Man a whopping 200 baht per month to 'care' for that buffalo.  200 baht a month - let that sink in! 
Know wonder Smiling Buffalo Man is being put back into his place.  Can't let the commoners get cheeky; can't let them get out of line. 

So income disparity is baked into the system.  It's wanted, it's needed by those who wish to laud over other human beings, to strip them of their money, their dignity, and their ability to earn a living;  Impoverishment keeps the commoners in line.  Sakdina still exists and is courted in this day and age.

 

 

[zzaa09]

Almost innocent within it's approach.

 

Political prowess, political infrastructures, and patronage systems have little to do with society or the people. 

 

Rather universal, ain't it?

[Redline]

Use technology and data bases-it’s not being done because that would show clear facts.  Good clear data will show the detailed picture 

[scorecard]

12 hours ago, connda said:

Thailand's still aggrandizes the feudal system and no doubt more than a few wealthy Thais would love to be seen as feudal lords served by free-holder peasants and slaves alike.  "Ahhh, bring back the good old days!"

Remember the dude, Smiling Buffalo Man, who is being tossed into maw of the judicial system for being cheeky enough to crowd-fund the selling 100K THB selling price of his smiling bovine friend?
Well according to Mrs Connda who follows Thai news, the owner of the beast gave Smiling Buffalo Man a whopping 200 baht per month to 'care' for that buffalo.  200 baht a month - let that sink in! 
Know wonder Smiling Buffalo Man is being put back into his place.  Can't let the commoners get cheeky; can't let them get out of line. 

So income disparity is baked into the system.  It's wanted, it's needed by those who wish to laud over other human beings, to strip them of their money, their dignity, and their ability to earn a living;  Impoverishment keeps the commoners in line.  Sakdina still exists and is courted in this day and age.

 

 

Good points, and it can be seen in all sorts of guises.

 

My Thai son married a very nice young Thai lady (they met at uni) who comes from an old style farming family in the North, she has 4 older and 3 younger siblings, her parents and her siblings all lack education, they all eat well from the fathers farm, the siblings have part-time jobs on other farms, roadwork, etc., financially they all just survive with my son bailing them out on several occasions..

 

By the time my son and his wife bought their own home in a nice village they had 2 young kids.

 

I pushed for them to have some part-time help, which I funded, agreed for 2 hours a day with my son and his wife saying, they would only agree to some help while the kids were very small.

 

Helper all organized, she arrives at 8.30 am every morning  as requested by my son and wife.

 

A few weeks after the helper started work son's older sister in law came to visit for first time, she's just walked into the carport area (not even entered the house) when the helper pulls in on her mocy, the time is 8.15 am.  Older sister instantly launches into abuse at the helper for being late. Son quickly interjects and says she not late she's early.

 

Older s-i-l insists that maids have to start work at 8.00 am, it's the law, she's late, and more tirade about don't be late again. My son get's everybody into the house and s-i-l starts again with the helper demanding to know why she hasn't made coffee for everybody. Son has to intercede again and insist it's not her job.

 

Around the same time son's brother in law comes to the house, first time. He insists he's a chef (not true) and soon after he comes inside he starts to cook. He spills perhaps 1/3 of a cup of soup on the floor and instantly yells at the maid 'larng, larng' (clean, clean). Son quickly tells the helper to please take care of the laundry and son tells his b-i-l not to speak to the helper like that. B-i-l of course insists that you have to speak that way to maids. 

 

 

[quandow]

19 hours ago, robblok said:

Inheritance tax is IMHO a bad tax at least in Western countries forcing those who saved and pay taxes pay again.

That's a touchy subject. The intent behind the inheritance tax is to break up empires. Each person is exempt for approximately $5.7 million, married couples double that (so essentially the same). There are now a handful of families who really run the country, and the income inequality is the highest since the Gilded Age back in the 1800's. The recent abolition of the inheritance tax has been harmful to the U.S. economy. This information below is from 2015 but is still relevant. I hope if anyone wants to debate this that they do so politely.

 

[Srikcir]

5 hours ago, quandow said:

That's a touchy subject.

US inheritance tax applies to the deceased's worldwide assets, including partial interests. Of course any inheritance tax collected by a foreign government could be used to offset any US inheritance tax.

 

The Thai inheritance tax is flawed in comparison that challenges its effectiveness and true purpose.

It applies only to domestic, public identifiable assets such as stock and tangible assets. There is however (I believe) a caveat that any assets found to be transferred out of Thailand up to a period of time (1 year?) before date of death will still be subjected to the tax. I suspect that unless the inheritors are political enemies of the government that very little investigative time will be spent on any confirmation of such transfers.

[bowerboy]

I do find it increasingly hard to have sympathy with low income earners in Thailand as they seem to have no interest in working harder or doing more to improve their lot.

 

Case in point: we paid the maid in our office 300 baht per day for 2 to 3 hours of work. She is useless and does a very poor job of cleaning. She came to the office after a couple of weeks in the job and demanded 500 baht per day. I said fine, no problem, we will pay you 500 baht per day but you have to improve your work and do a better job with the cleaning. She refused and said no, she wouldn’t improve her work but just wanted more salary.

 

We let her go and employed a new maid.