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February 1, 2008 Friday
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Feb 1, 2008
Better to apply graduated tax on sportsmen's earnings
INSTEAD of slamming swimmer Tao Li for expressing her displeasure at having to give up 15 per cent of her cash award, we should examine her grounds for bringing up the issue of sportspersons giving up part of their earnings.

How can we get our youngsters to speak their minds if we criticise them for saying things which we do not agree with?

After sifting through the arguments, we should look at the bigger picture of sportspersons' remuneration in Singapore. They take the risk of dedicating many of their prime years of life to their sports with no assurance of succeeding in a big way.

What are the chances of Singaporeans making it big sports-wise and financial-wise? Competitions such as the SEA Games, from which they can make some decent money, do not come annually. During the other 'slim' years, pickings may be much lower. Thus their prize money could be 'lumpy' over the years.

Also, those earning, say, $100,000 should not mind giving up 10 per cent because they still have $90,000, but for those getting only $10,000, giving up $1,000 and leaving them only $9,000 is painful.

I suggest that sports bodies should have a threshold of, say, $20,000 below which the sportsperson need not give up his prize money.

For the next say, $30,000, he contributes, say, 5 per cent. Anything above, say, $50,000, he contributes 10 per cent.

His earnings should be looked at over, say, four years so that if he earns $50,000 in year 1 and $10,000 per year for the next three years, all his 'tax' in year 1 should be refunded to him.

Ong Eng Joo

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