Should Singapore tax the wealthy more?
This year’s Singapore Budget has garnered accolades for its focus on lower-income groups and the so-called Pioneer generation. One glaring omission, however, is in efforts to redistribute wealth. That is a missed opportunity; Singapore needs to address its drastic wealth inequality in order to, among other things, reduce social tensions, improve social mobility and maintain its commitment to building a fair and just society.
The distinction between income and wealth inequalities is important. In Singapore, a person can have immense wealth—inherited property, for example—with very little traditional income. This creates the somewhat perverse situation where some very wealthy people also own HDB flats and qualify for huge healthcare subsidies while simultaneously investing in stocks and second properties, furthering their wealth advantage over the poor. In order to properly address social inequities, both inequalities—income and wealth—have to be reduced.