webfact Posted December 23, 2012 Share Posted December 23, 2012 EDITORIAL Why are we cutting tax for the most wealthy people? The Nation Pheu Thai govt favouring the rich when the country has limited revenue BANGKOK: -- The Yingluck government claims that the new tax structure is meant to create justice for all taxpayers. However, justice cannot be achieved by cutting the personal income tax rate for the rich. The government has announced it will cut personal income tax via progressive rates. For instance, those earning Bt150,000 up to Bt300,000 will be subject to a 5-percentage point cut. However, the government also cut the tax rate for whose earning more than Bt4 million - by 2 percentage points, from 37 to 35 per cent. While cutting tax for low-income earners is understandable, as it would ease the financial burden they face, the government does not have a good reason to cut the tax rate for the richest people in Thailand. Top income earners will reap significant benefits from the new tax policy. That's because high-income earners already receive tax deduction benefits for investments in mutual funds. The latest tax cut is a piecemeal approach by the government aimed at winning it popular support, especially from low-income earners and a small group of top income earners. Some of these people are supporters of the Pheu Thai Party or millionaires with business connections. Naturally, tax cuts can be politically popular. However, any government has to find sources of income to offset the loss of tax revenue caused by such cuts. The Finance Ministry expects that the government will lose around Bt25 billion annually from the new tax rates. The question for the government is how to find additional sources of income to offset the loss of revenue as a result of cuts and other programmes such as the car policy which also waived tax payments for first car buyers. After all, tax revenue helps the government finance its programmes to promote a redistribution of wealth and benefits to the poor. In the US, tax changes have always provoked heated political debate, as evidenced in the recent US presidential election, and current dispute on how to resolve the looming "fiscal cliff". But there has been almost no public debate here. Who will benefit from the tax cut - the rich, the middle class or the poor? And where the government find extra sources of money to fund its spending on public health and education programmes? The government also needs to consider measures to ensure fair tax collection, so it can claim that reform of the tax system is being done for reasons of "social justice". In Thailand, only a very small number of people - about two million people - actually pay personal income tax. Most of these people are office employees. The rest usually avoid paying tax by either misinforming the amount of their income or doing business in the massive informal sector, which is beyond the scrutiny of tax collection officers. The proportion of tax collected in this country is lower than many countries. Tax revenue in Thailand accounts for around 16 per cent of gross domestic product, compared to a desirable rate of 20 per cent or more. The tax collection system also favours the rich because Thailand's wealth tax is ineffective. Stock-related earnings and translations are not sufficiently taxed. And property and land taxes are also extremely limited, and fail to ensure the wealthiest people pay tax commensurate to their earnings and assets. This is why the Kingdom has one of the worst levels of wealth disparity in the world. If the Yingluck government really wants to really create a just tax collection system, it must reform the current set-up and close all loopholes so all eligible income-earners pay fair rates of tax. The government must ensure that taxes on the rich equate with their wealth and social responsibility - instead of claiming to help the poor, when they are really just handing more benefits to the rich. -- The Nation 2012-12-24 Link to comment Share on other sites More sharing options...
OzMick Posted December 24, 2012 Share Posted December 24, 2012 (edited) How many millionaire MPs will declare a conflict of interest? Current betting odds are even money for odd and even numbers, a million to one against for zero. Edited December 24, 2012 by OzMick 2 Link to comment Share on other sites More sharing options...
jackr Posted December 24, 2012 Share Posted December 24, 2012 The main reason this government is in office is to make money. Hoe about follow France's policy, tax the toffs at 75%! Link to comment Share on other sites More sharing options...
Popular Post fareastguy Posted December 24, 2012 Popular Post Share Posted December 24, 2012 Quote: In the US, tax changes have always provoked heated political debate, as evidenced in the recent US presidential election, and current dispute on how to resolve the looming "fiscal cliff". But there has been almost no public debate here. Why would you expect debate in a dictatorship ? 7 Link to comment Share on other sites More sharing options...
MaxLee Posted December 24, 2012 Share Posted December 24, 2012 (edited) First thing the government is actually doing now is to get did of ILLEGAL workers of Burma by punishing that deadline, rip them off their money, and deport them back, ... Less visas to provide… Edited December 24, 2012 by MaxLee Link to comment Share on other sites More sharing options...
Skywalker69 Posted December 24, 2012 Share Posted December 24, 2012 Why are we cutting tax for the most wealthy people? Ask the Government of the people, for the people.........the rich ones. 1 Link to comment Share on other sites More sharing options...
hanuman2543 Posted December 24, 2012 Share Posted December 24, 2012 First thing the government is actually doing now is to get did of ILLEGAL workers of Burma by punishing that deadline, rip them off their money, and deport them back, ... Less visas to provide… What this has to do with tax-cuts for Thailands wealthy? And what is the purpose of your suggestion? 2 Link to comment Share on other sites More sharing options...
Popular Post angsta Posted December 24, 2012 Popular Post Share Posted December 24, 2012 The Nation as a newspaper has zero credibility in my eyes. 7 Link to comment Share on other sites More sharing options...
EvilDrSomkid Posted December 24, 2012 Share Posted December 24, 2012 Pheu Thai. The party allegedly "helping" the poor. The real name should be Pheu Thai Ruay (เพื่อไทยรวย) Link to comment Share on other sites More sharing options...
Siripon Posted December 24, 2012 Share Posted December 24, 2012 Pheu Thai. The party allegedly "helping" the poor. The real name should be Pheu Thai Ruay (เพื่อไทยรวย) Slash the corporation tax for the rich business owners and now cut the personal income tax for the rich! 1 Link to comment Share on other sites More sharing options...
EvilDrSomkid Posted December 24, 2012 Share Posted December 24, 2012 The Nation as a newspaper has zero credibility in my eyes. So you believe the issues raised in the article are untrue (incredible)? The new tax structure does not benefit the rich? Technically, only high wage earners obviously. The wealthy in this country, like most, have income from more than salary. Which is barely taxed not to mention the massive amounts of land they own. Which all the nasty foreigners are supposedly owning by proxy. 2 Link to comment Share on other sites More sharing options...
EvilDrSomkid Posted December 24, 2012 Share Posted December 24, 2012 Pheu Thai. The party allegedly "helping" the poor. The real name should be Pheu Thai Ruay (เพื่อไทยรวย) Slash the corporation tax for the rich business owners and now cut the personal income tax for the rich! The corporate tax rate counts for all businesses. Larger companies benefit more, of course. Link to comment Share on other sites More sharing options...
rubl Posted December 24, 2012 Share Posted December 24, 2012 Why are we cutting tax for the most wealthy people? 1. promote trickle down effect 2. follow America's lead 3. corporations are people too 4. poor people don't pay tax, so cannot be cut 5. etc., etc. 1 Link to comment Share on other sites More sharing options...
chainarong Posted December 24, 2012 Share Posted December 24, 2012 Take fifty percent of nothing and that's what you have got out in the country and suburbs of Thailand, take fifty percent of a millionaire wage and what you have left is a millionaire, now you have a problem, where are you going to get more money from, go figure Yingluck. Link to comment Share on other sites More sharing options...
Ricardo Posted December 24, 2012 Share Posted December 24, 2012 The main reason this government is in office is to make money. Hoe about follow France's policy, tax the toffs at 75%! I somehow doubt that the 'Big Boss' would ever bring himself to Think of that, or that PTP would ever Act upon it, if he did ! Tax is for the little people to pay, not the billionaires, they surely prefer to deal offshore ? Link to comment Share on other sites More sharing options...
Popular Post saltandpepper Posted December 24, 2012 Popular Post Share Posted December 24, 2012 The Nation as a newspaper has zero credibility in my eyes. I think exactly the same about this government 6 Link to comment Share on other sites More sharing options...
jerrysteve Posted December 24, 2012 Share Posted December 24, 2012 COME on Now! Does ANYONE with Half A Brain really Need to Ask that Question. 1 Link to comment Share on other sites More sharing options...
seajae Posted December 24, 2012 Share Posted December 24, 2012 of course they have to slash their own taxm how else can they benefit from being in govt, bugger the people, as long as they make money. Top tax rates should go up not down. Link to comment Share on other sites More sharing options...
caykay Posted December 24, 2012 Share Posted December 24, 2012 Because this is Thailand Link to comment Share on other sites More sharing options...
masaomi Posted December 24, 2012 Share Posted December 24, 2012 What are a dumb question! Because this country is run by the wealthy! That's why. Link to comment Share on other sites More sharing options...
NoshowJones Posted December 24, 2012 Share Posted December 24, 2012 The main reason this government is in office is to make money. Hoe about follow France's policy, tax the toffs at 75%! The reason any Government is in office is to make money. Link to comment Share on other sites More sharing options...
Felt 35 Posted December 24, 2012 Share Posted December 24, 2012 a Nation of mostly hardworking people lured from cradle to grave througout history Link to comment Share on other sites More sharing options...
notime Posted December 24, 2012 Share Posted December 24, 2012 Why is Thai government cutting taxes and its revenue? Because it has nothing to spent it on. Everything is perfect, the country is booming and it's time to celebrate now! 1 Link to comment Share on other sites More sharing options...
firestar Posted December 24, 2012 Share Posted December 24, 2012 http://www.nationmultimedia.com/business/Steeper-tax-cut-needed-to-stop-brain-drain-30196687.html Contradict yourself much The Nation? But actually it makes sense since the yellow shirt mouth piece that is The Nation will say anything and it's opposite to find an angle of attack, hoping something will stick. 1 Link to comment Share on other sites More sharing options...
geriatrickid Posted December 24, 2012 Share Posted December 24, 2012 This thread is an embarrassment, because the Nation in its business section criticizes the government for not cutting the taxes more. So which is it? The tax rate on those to receive some relief was already high. The adjustment is intended to bring some fairness back. It seems some people using the adjustment to attack the government most likely are not paying income tax in the segments pegged for relief, otherwise they would know that the segments were overtaxed. For reference sake; Net Income (Baht) Rate (%) 0 – 150,000 - 0 % 150,000 – 500,000 - 10% 500,000 – 1,000,000- 20% 1,000,000 – 4,000,000 -30% 4,000,000 – up - 37% The Nation's business section makes some valid points; http://www.nationmul...n-30196687.html - a steeper cut is necessary if the Kingdom wants to raise its profile among foreign investors, who are being wooed by countries with lower tax rates. - this is the first major change in 20 years. -compared to Singapore and Malaysia - the two Asean members who offer comparative levels of infrastructure and skilled labour as Thailand - this rate is still high. Singapore's highest tax rate is 20 per cent, while Malaysia is 26 per cent. Regionally, Thailand's top personal income tax rate is the highest, even when compared to Vietnam, which charges 35 per cent and Indonesia, which has fixed its rate at 30 per cent. - cutting taxes would be one of the first steps Thailand would have to take in order to avoid brain drain and attract newcomers. - Under the new tax structure in Thailand, those with a net taxable income of above Bt4 million are subjected to the highest rate of 35 per cent. In comparison, expats working in Singapore pay 15 per cent if they have taxable income of no more than S$160,000 or Bt4.06 million. The highest rate of 20 per cent is slapped on those with taxable income of more than Bt8.1 million. In Malaysia, only those with taxable income of more than 100,000 ringgit or Bt10 million are subjected to the highest rate of 26 per cent. Link to comment Share on other sites More sharing options...
F4UCorsair Posted December 24, 2012 Share Posted December 24, 2012 (edited) I see The nation has adopted the ridiculous 'percentage point' terminology in lieu of ....percent(%). There would be few more stupid cliches created than 'percentage point' and 'basis point'. Why should the wealthy be taxed more? I believe they should be taxed less. They've made it, own businesses, employ people who pay tax, and without their enterprise there would be no jobs or wealth. Wealthy people keep the wheels of enterprise turning and should not be penalized but rewarded. Edited December 24, 2012 by F4UCorsair 1 Link to comment Share on other sites More sharing options...
chrisrazz Posted December 24, 2012 Share Posted December 24, 2012 I think the important figure in all this is; "In Thailand, only a very small number of people - about two million people - actually pay personal income tax" Link to comment Share on other sites More sharing options...
DP25 Posted December 24, 2012 Share Posted December 24, 2012 http://www.nationmul...n-30196687.html Contradict yourself much The Nation? But actually it makes sense since the yellow shirt mouth piece that is The Nation will say anything and it's opposite to find an angle of attack, hoping something will stick. This link is the editorial position of The Nation. I believe your link is a an individual columnists opinion. The Nation often has columnists writing articles that are not in line with their editorials. They even publish red shirt columnists, who obviously go against the standard editorial line of the paper. Regardless, how about trying to address the points in this article? It is amusing to watch people who once loudly proclaim their support for common people and social programs for the poor justify tax cuts for the rich and the further crippling of a tax system that is already toothless and unable to properly collect revenue. 1 Link to comment Share on other sites More sharing options...
thaicbr Posted December 24, 2012 Share Posted December 24, 2012 This thread is an embarrassment, because the Nation in its business section criticizes the government for not cutting the taxes more. So which is it? The tax rate on those to receive some relief was already high. The adjustment is intended to bring some fairness back. It seems some people using the adjustment to attack the government most likely are not paying income tax in the segments pegged for relief, otherwise they would know that the segments were overtaxed. For reference sake; Net Income (Baht) Rate (%) 0 – 150,000 - 0 % 150,000 – 500,000 - 10% 500,000 – 1,000,000- 20% 1,000,000 – 4,000,000 -30% 4,000,000 – up - 37% The Nation's business section makes some valid points; http://www.nationmul...n-30196687.html - a steeper cut is necessary if the Kingdom wants to raise its profile among foreign investors, who are being wooed by countries with lower tax rates. - this is the first major change in 20 years. -compared to Singapore and Malaysia - the two Asean members who offer comparative levels of infrastructure and skilled labour as Thailand - this rate is still high. Singapore's highest tax rate is 20 per cent, while Malaysia is 26 per cent. Regionally, Thailand's top personal income tax rate is the highest, even when compared to Vietnam, which charges 35 per cent and Indonesia, which has fixed its rate at 30 per cent. - cutting taxes would be one of the first steps Thailand would have to take in order to avoid brain drain and attract newcomers. - Under the new tax structure in Thailand, those with a net taxable income of above Bt4 million are subjected to the highest rate of 35 per cent. In comparison, expats working in Singapore pay 15 per cent if they have taxable income of no more than S$160,000 or Bt4.06 million. The highest rate of 20 per cent is slapped on those with taxable income of more than Bt8.1 million. In Malaysia, only those with taxable income of more than 100,000 ringgit or Bt10 million are subjected to the highest rate of 26 per cent. How many percentage of population in Singapore/Malaysia actually pay tax, i think its a lot higher than Thailand Link to comment Share on other sites More sharing options...
belg Posted December 24, 2012 Share Posted December 24, 2012 non-working expats pay taxes ? no ? yes ? 15% of every satang that i earn true bank fix deposit interests are taking away and that amounts in much more money than the everage thai person pays in taxes let stand social security, but i am not entitled to any social security ? Link to comment Share on other sites More sharing options...
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