Forum: Raising taxes on wealthy won't solve income gap

A lunch crowd in Singapore's central business district.
A lunch crowd in Singapore's central business district.PHOTO: ST FILE

While some countries subscribe to the idea of Robin Hood tax, it's a slippery slope for Singapore if it does the same (Populist policies will lead to higher taxes: DBS chief, Jan 10).

By taxing the wealthy fairly, they are more inclined to expand their business and create more jobs for Singaporeans. How will taxing the wealthy more help to generate jobs?

As far as redistribution is concerned, people need jobs and the wealthy must be given an incentive with fair tax to provide employment.

Raising taxes on the wealthy isn't going to solve income inequality. The wealthy will just move to other countries that are tax-friendly.

Our capitalist economy creates incentives and competition for progress.

These enterprises would not exist if they are subject to higher tax. The wealthy are not rich by chance. They work hard, embrace financial discipline, save and invest. We shouldn't punish them with higher tax.

It makes sense for Singapore to encourage wealth builders and not demonise their success.

I can understand some are resentful of the wealthy as they believe it makes economic sense and see virtue in redistribution of wealth. But we must also think of the free market and the economic consequences that can hurt the wealthy and the poor alike. It's a zero sum game.

Cheng Choon Fei

A version of this article appeared in the print edition of The Straits Times on January 13, 2020, with the headline 'Raising taxes on wealthy won't solve income gap'. Subscribe