The Dark Shadow Shrine

embrace the darkness; that you may see the light nestled within it......

Sunday, April 07, 2013

Goose that Lays Golden Eggs

Regarding an earlier post on the Robin Hood Syndrome, which is used to describe the progressive tax structure of Singapore where the rich are taxed to help the poor (Click HERE), the article below has some reference to it. What caught my eye is the warning via the goose imagery. Prior to this, I have been using this goose metaphor to show how profit and Mother Nature can co-exist if we are to take into account long term sustainable profits where Mother Nature (i.e. the goose) need to be well taken care of if we want to have a continued stream of resources (i.e. golden eggs) from her in the future. If we are overcome by short term greed and exploit Mother Nature indiscriminately, eg cut down all the trees (i.e. kill the goose), there will be no more resources or trees (i.e. golden eggs) for us to cut down years down the road. In a nutshell, long term sustainable profits demand that Mother Nature's well-being be part of the equation.
This same metaphor is applied to our tax structure in the article below: the goose are the rich people, and the golden eggs are the tax revenue derived from the rich. Milk them too hard and the rich will flee the country and there goes our goose, and together with it, the revenue that comes from their taxes. Note the point that unfair or extreme taxation goes against the philosophy of meritocracy, where the abled and competent are justified in having a greater reward (i.e, higher income) -- and keeping them. Taxing them mercilessly to narrow the income gap is tantamount to 'punishing talent', in the words of French actor, Gerard Depardieu, who migrated to neighbouring Belgium to escape the high taxation in France. Singapore cannot afford to do this as meritocracy is the cornerstone of our success as we depend on attracting and retaining talent, given that we have no natural resources and have to depend on human resource/capital.

Sample Qn: To what extent is the government effective in narrowing the income gap in your society? (use the above content as rebuttal to govt's measure of taxing the rich)