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Thaksin Proposes Negative Income Tax to Combat Poverty in Thailand:

Thaksin Shinawatra is proposing a negative income tax (NIT) to tackle poverty and reduce inequality in Thailand. NIT, a concept first proposed by economist Milton Friedman, tops up the income of those earning below a certain level, incentivizing work while integrating recipients into the tax system. While this idea has been discussed before in Thailand, it faces challenges, including the need for tax system reform and public acceptance. Thailand’s budget deficit and shrinking revenue base add to the complexity of implementing NIT, making it a bold but risky proposal in the country’s current economic climate.

Posted

If you don't pay any tax anyway because your income is vanishingly small (as in my family and for millions of other Thais), then a 'negative income tax' will have little to do with income tax or educating you about income tax because any likely subsidy from the government will still leave you below the income tax threshold.

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Posted

I dont believe its his place to offer this option as he isn't in a political office. The press should stop contacting him for fodder just to get readers.

  • Agree 2
Posted

Negative Income Tax = Cash Handouts for the poor?  Why complicate it.  Just give out money to the truly poor. Forgive certain debt, tax the rich and go green.  Wait, that's America in 2024. 

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Posted (edited)

In other words, subsidize relatively unproductive jobs (or workers) at the expenses of the more productive ones.

I don't think this is the right recipe for lifting Thailand out of the mid-income trap.

And it would be a terrible idea to finance it with budget deficits and by increasing the national debt.

Edited by AndreasHG
  • Agree 1
Posted

Thailand would have to increase tax revenue to pay for a NIT. Maybe just tax farang on their remittances and global income!

 

By 2023 almost 11 million Thais filed income taxes...but this was only about 25% of the workforce. 

 

"The main aim of the Revenue is to close tax loopholes which formerly allowed Thais and some wealthy foreigners to reap huge profits from overseas investments, currency speculations and cash buildups in offshore accounts often held for years. Separately, the Revenue has published new reporting rules for digital platform operators to allow it to collect information on sellers’ total income from their online activities, aiming to nudge more online product and service providers into the tax system.

Many experts believe that the recent words of Lavaron Sangsnit are highly relevant to all recent tax announcements: “The world is getting smaller, more connected and traceable because of digitalization. In the past, it may have been impossible to detect tax evasion, but now it can easily be detected.” Now that Thailand has joined the Common Reporting System (CRS) of around participating 120 countries, financial institutions round the world will inform member governments of individuals’ transactions to fight tax evasion and protect the integrity of tax systems. In other words, when you send money abroad it is no longer a private affair." 

Source. https://www.pattayamail.com/latestnews/news/thai-revenue-releases-personal-income-tax-data-449478

tax.JPG

Posted
1 hour ago, Dan O said:

I dont believe its his place to offer this option as he isn't in a political office. The press should stop contacting him for fodder just to get readers.

He's running the country by proxy. Everyone knows that. He should just keep his mouth shut and let the PM come up with the silly ideas (his ideas). 

Posted

Well, the Pheu Thai was going to give THB 10,000 to everyone. Is this new idea going to replace that giveaway or be in addition to it?

It sounds like a sneaky way to register more people for tax later.

 

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Posted

Thai personal income tax liability starts at 150,001 baht annual income (see chart from https://www.rd.go.th/english/6045.html).

 

If a NIT increased income or "negative tax" up to this level (or any level) there would be an incentive to report income below the minimum tax threshold. 

 

Again, if you do not have accurate data on everyone in the country you cannot implement a negative tax scheme accurately. Maybe this will be solved if Thailand adopts a CBDC and forces everyone to use it? Maybe a negative tax will be announced to trick people into getting tax IDs?

Thai income tax rates.JPG

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Posted
29 minutes ago, Tom100 said:

Thai personal income tax liability starts at 150,001 baht annual income (see chart from https://www.rd.go.th/english/6045.html).

 

If a NIT increased income or "negative tax" up to this level (or any level) there would be an incentive to report income below the minimum tax threshold. 

 

Again, if you do not have accurate data on everyone in the country you cannot implement a negative tax scheme accurately. Maybe this will be solved if Thailand adopts a CBDC and forces everyone to use it? Maybe a negative tax will be announced to trick people into getting tax IDs?

Thai income tax rates.JPG

Thanks for this.  If I were to pay income tax in LOS based upon my US AGI then I could in the 30% bracket?  What the heck? 

Posted

The Thai debt-GDP ratio will reach about 65% in 2024 -- up over 50% since 2019 (42% of GDP). The 3% annual deficit will be added to this.  The economic slowdown will cut revenues while expenditures are rising. 

 

Any NIT would cause further fiscal deterioration. In plain english, the <deleted> would hit the fan because no foreign investors want to buy Thai debt because of the currency and political risk. 

 

GOOD NEWS for expats: The baht has been in long term decline vs. USD/Euro.  Poor Thai fiscal management will assure the continuation of this trend. 

 

 

 

debt.JPG

baht since 1970.JPG

Posted

How about implementing a livable minimal income instead? So people in Thailand can survive without the help of the government? In that way they would be independent.

 

But no, CCP agent and friend of George Soros Thaksin wants the people to be dependent on the government.

Posted

Negative income tax, another name for handing out money in exchange for no work. Economies work by paying people to work, period.

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Posted

We can tell who is running the country and it’s not his daughter how the hell does he get away with it He is that powerful he has everyone wrapped around his little finger 

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