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12 May 2024  (4486 Views) 
Tan Kin Lian - Perspectives

Countries with high tax rates
Several European countries have high taxes, which could  be 50% or higher. China and Japan have progressive tax rates that goes up to 45%. 

Singapore, Hong Kong and the United States have low tax rates. 

I prefer that a country have high tax rates, so that they can provide many public services at low cost or free. Some of these subsidized public services are education, health care, public safety and public transport.

Education and health care are extremely expensive in the United States. Many ordinary people find them to be un-affordable. 

In Singapore, the state does provide subsidized health care, but when the patient needs to get private care, the cost can also be extremely expensive. There are insufficient university places, so many parents have to send their children to study overseas at high cost. 

I prefer the high tax rate in China and Japan, especially when the public services are of high quality and are available for free or at a very low cost. 

The high tax rate applies mainly to the high income earners, and do not affect the ordinary workers who have to pay low tax rates under a progressive system. 

Many ordinary people were deluded into thinking that a low tax rate is good for the economy. It is not the case. 

Tan Kin Lian  

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