Reform Needed To Cut Wealth Gap In Thailand.

[Lite Beer]

Reform needed to cut wealth gap: Anand, Prawase say

By Pravit Rojanaphruk.

'A revolt could happen here if wealth inequality not acted upon'

Thai society needs to reform itself in order to reduce socio-economic and political disparities between the "haves" and "have-nots" if it is to avoid a violent and deadly revolt like that in Egypt, warned Anand Panyarachun, former premier and chairman of the National Reform Committee.

"The reform process is a measure to thwart unrest in Thailand," Anand told a public forum organised by TPBS television station yesterday. "Let us take the initiative to do it before it's too late. That's what I want to convey to society."

Anand warned, however, that reform wouldn't be easy to do. But he didn't want society to think the reform committee that he and senior NGO leader and social thinker Prawase Wasi head - will necessarily succeed.

"Nothing is easy. But I have never allowed obstacles to pre?vent me from acting."

Anand and Prawase face an uphill task in trying to reduce social and economic inequality. They are proposing land and tax reforms and ensuring more equal rights for citizens under the law.

Many red shirts have denounced and boycotted the committee because its leaders were appointed by Prime Minister Abhisit Vejjajiva after the bloody crackdown on red shirts that led to 91 deaths. The committee is seen as part of alleged tactics to buy time and bury issues of government accountability. A source at TPBS said that many reds refused to attend the forum as they viewed the organisers and speakers as political rivals.

Anand insisted the red and yellow divide meant nothing to the committee, however. "I've told others I'm colour blind," he said.

Six months on, Anand said he had gained some measure of confidence but urged the public to be patient about results.

The committee would propose ideas regarding land reform tomorrow. Anand said unutilised land needed to be purchased by the government for redistribution to poor farmers.

He said too much wealth, power and knowledge were concentrated in Bangkok and as long as things stayed that way the inequality gap would not be narrowed.

Prawase said the average disparity between the rich and the poor in Thailand was about 15 to 16 times' [total assets].

"We have been ordered to take paracetamol and aspirin for too long but have not addressed the root cause of the problems," he said, adding that the issues of structural inequality and lack of justice had to be tackled.

"Reform is not an off-the-shelf product but a continuous process." He added, however, that the government had already adopted some proposals made by reform committees headed by himself and Anand. Among these were a plan to establish one university in each province, as well as a policy to provide funds to help needy people to get lawyers to fight cases on their behalf.

-- The Nation 2011-02-06

[londonthai]

"the National Reform Committee. ... "The reform process is a measure to thwart unrest in Thailand"

all members of this committee were appointed by the pm, so they are politically biased and their main objective was clearly stated "thwart unrest".

ahead of the energy crisis and food price hike, it might be a difficult task

[kuffki]

Should not be too hard to do.

Option 1.

Tax the rich, actually make sure that they pay taxes on 1000 condo's and commercial buildings they own and rent

Option 2.

Make them pay decent wages to employees.

Option 3.

Write about it and forget all about it by next week.

I have a feeling option 3 is the favorite.

[Robby nz]

There is everywhere and always will be a wealth gap.

There will always be those who get off their chuffs and work hard to achieve something for themselves and those who will never be anything else but a employee of otheres.

Heck even I started with nothing and over many years of hard work managed to work myself up to a position of poverty.

Now with careful budgeting I can just affoard to retire in Thailand.

Giving things to lazy buggers is not the answer.

Rather what is needed is to create a climate where enterprise and hard work is rewarded.

[kuffki]

In my opinion, one of the main problems with all of it, is that system is designed in a way that rich can get more rich while the poor stay where they are.

Let me explain little better.

When someone owns a condo or a commercial building and they rent it out, they really should be paying tax on income.

HOWEVER

When the owner of the commercial premises(just as an example) make the contract to rent, he has an option to register the contract with the land department or not.

If he/she does register then tax must be paid on the building, land and also i believe 5% on the rental amount, however if the owner does not register the contract-nothing is paid.

Most owners do not want to register and if they are forced to do so, they will make the person who is leasing to pay all the taxes.

So the rich gets richer, because they hardly pay any taxes and the poor or hard working- can not get a break.

[h90]

In my opinion, one of the main problems with all of it, is that system is designed in a way that rich can get more rich while the poor stay where they are.

Let me explain little better.

When someone owns a condo or a commercial building and they rent it out, they really should be paying tax on income.

HOWEVER

When the owner of the commercial premises(just as an example) make the contract to rent, he has an option to register the contract with the land department or not.

If he/she does register then tax must be paid on the building, land and also i believe 5% on the rental amount, however if the owner does not register the contract-nothing is paid.

Most owners do not want to register and if they are forced to do so, they will make the person who is leasing to pay all the taxes.

So the rich gets richer, because they hardly pay any taxes and the poor or hard working- can not get a break.

Some bought huge pieces of land, just as investment without doing anything on it. A small tax on it would free a lot land...bringing the land prices down so also poor people can have their own piece.

But you are right: Option 3 is the way it will go. Rich can pay the decision makers.

[virtualtraveller]

As with many of Thailand's ills, if law was better enforced here (ie a more honest and honorable police force) then it would be far more difficult for the rich to bribe their way out of accountability, or to unfair opportunities. More tax would be collected to distribute the poor and the rich would find it more difficult to run roughshod over them (e.g employing them as permanent part-time employees to skirt minimum wage restrictions).

The laws are made with the best intention and are pretty sound, if sometimes impractical, but beyond that they are useless since the police are so corruptible and society in general seems to favour a pliant constabulary.

[ib1b4]

Do you people neally think reform will happen in our life time? the ELITE will fight tooth ? nail as they have done before to stop any posible way they might loose control over the population, sent it to the courts and they will win every time,

[jayjay0]

Do you people neally think reform will happen in our life time? the ELITE will fight tooth ? nail as they have done before to stop any posible way they might loose control over the population, sent it to the courts and they will win every time,

This is not a problem that is unique in the world. It exists always has and always will in most countries in the world.

It is a ploy used by the wannabe's to gain power and once they gain it scrap the idea.

The only thing that will help is when the rich themselves make moves to narrow the gap.

The idea that taxing the rich for the various assets that they have and do not pay tax on will not narrow the gap. It will just put money in the government coffers. And that is a item for a different thread.:jap:

[lungmi]

Edited February 6, 2011 by lungmi

[asiawatcher]

This is such a poorly put together article - amazing. Perhaps Anand & Co should be citing effort for reward usually creates wealth and in most instances, it does. But in Thailand that 'effort' is a lot to do with corruption as there are certain rules here that don't apply anywhere else! To even air "reform needed to cut wealth gap" - perhaps be more specific. Cut corruption and that gap would close immensely but to leave this as ambiguous about Bangkok's elite (obviously where a great deal of money resides - and rightly so) is pure nonsense.

There are many billionaires in Thailand (Baht) and not all gains by hard labour and yet on the other hand, there are those winners who did it the right way. So don't try telling the world reform is needed in innuendo that rich and poor need more 'discussions' as it has always been a level playing field, work hard and smart and you get rich. Sit on your but and steal from other and get richer too. But the people who sit and do nothing and expect handouts are starting to sound like the West - next will be social security and next, the country is in debt to future generations until the currency collapses - all because some whingers wanted 'reform'. Sounds like Robin Hood, take from the rich and "give" to the poor.

Reform rules on corruption and create assets seizures if found guilty and start putting a hefty jail time on convictions and I am sure a lot of the level playing field will lose a few humps... and that will close the gap even further but god forbid Thailand goes down the path of Social Security handouts.

[jimbeam1]

Do you people neally think reform will happen in our life time? the ELITE will fight tooth ? nail as they have done before to stop any posible way they might loose control over the population, sent it to the courts and they will win every time,

This is not a problem that is unique in the world. It exists always has and always will in most countries in the world.

It is a ploy used by the wannabe's to gain power and once they gain it scrap the idea.

The only thing that will help is when the rich themselves make moves to narrow the gap.

The idea that taxing the rich for the various assets that they have and do not pay tax on will not narrow the gap. It will just put money in the government coffers. And that is a item for a different thread.:jap:

The rich get richer, the poor get poorer. Fact of life, always has been always will be. Perhaps you can add to that, the lazy, get what they deserve?

jb1

[jayjay0]

Do you people neally think reform will happen in our life time? the ELITE will fight tooth ? nail as they have done before to stop any posible way they might loose control over the population, sent it to the courts and they will win every time,

This is not a problem that is unique in the world. It exists always has and always will in most countries in the world.

It is a ploy used by the wannabe's to gain power and once they gain it scrap the idea.

The only thing that will help is when the rich themselves make moves to narrow the gap.

The idea that taxing the rich for the various assets that they have and do not pay tax on will not narrow the gap. It will just put money in the government coffers. And that is a item for a different thread.:jap:

The rich get richer, the poor get poorer. Fact of life, always has been always will be. Perhaps you can add to that, the lazy, get what they deserve?

jb1

Point taken.

[inmysights]

Do you people neally think reform will happen in our life time? the ELITE will fight tooth ? nail as they have done before to stop any posible way they might loose control over the population, sent it to the courts and they will win every time,

This is not a problem that is unique in the world. It exists always has and always will in most countries in the world.

It is a ploy used by the wannabe's to gain power and once they gain it scrap the idea.

The only thing that will help is when the rich themselves make moves to narrow the gap.

The idea that taxing the rich for the various assets that they have and do not pay tax on will not narrow the gap. It will just put money in the government coffers. And that is a item for a different thread.:jap:

The rich get richer, the poor get poorer. Fact of life, always has been always will be. Perhaps you can add to that, the lazy, get what they deserve?

jb1

NOT ALL poor people are lazy. Rubber tappers/rice farmers/garbage collectors. And not ALL wealthy people are industrious, some/many have 'connections and many are unscrupulous selfish psychotic bastards.

[svtbg]

Wealth gap will be cut when poor Thais seize the wealth of rich Thai-Chinese.

[gemini81]

In my opinion, one of the main problems with all of it, is that system is designed in a way that rich can get more rich while the poor stay where they are.

Let me explain little better.

When someone owns a condo or a commercial building and they rent it out, they really should be paying tax on income.

HOWEVER

When the owner of the commercial premises(just as an example) make the contract to rent, he has an option to register the contract with the land department or not.

If he/she does register then tax must be paid on the building, land and also i believe 5% on the rental amount, however if the owner does not register the contract-nothing is paid.

Most owners do not want to register and if they are forced to do so, they will make the person who is leasing to pay all the taxes.

So the rich gets richer, because they hardly pay any taxes and the poor or hard working- can not get a break.

startling on ly 3 million of the 64 million people here are paying personal income tax. very small amount of the business owners are either. when there is no consequence to an action, of course people aren't going to pay. too many exceptions and grey areas here too.

Edited February 6, 2011 by gemini81