In a current democracy, citizen income is taxed away from citizens, even without them realizing it. Most citizens do not realize that they are owners of their countries and are rightfully entitled to the income generated from common properties. Most people believe that current democracies have a progressive tax system. In truth, they have a very regressive tax system.
"A regressive tax is a tax imposed in such a manner that the tax rate decreases as the amount subject to taxation increases. In terms of individual income and wealth, a regressive tax imposes a greater burden (relative to resources) on the poor than on the rich."
"A regressive tax is a tax imposed in such a manner that the tax rate decreases as the amount subject to taxation increases. In terms of individual income and wealth, a regressive tax imposes a greater burden (relative to resources) on the poor than on the rich."
As an illustration, the table on the left shows the income tax payable in Singapore. It appears to be progressive. The more a person earns, the higher percentage of tax he has to pay.
However, once we consider the citizen income, the picture is entirely opposite. The table on the right shows the earned income plus a citizen income of $9,000 estimated for every citizen. The regressive tax is obvious and extreme. The poor bears an extremely heavy tax burden.
Current Democracy Perspective
|
Citizen-ownership Democracy
Perspective
|
|||||
Earned Income
|
Tax Payable ($)
|
Tax Rate
|
Earned Income + Citizen Income
|
Tax+ lost Citizen Income
|
Real Tax Rate
|
|
0
|
0
|
0.0%
|
9000
|
9000
|
100.0%
|
|
1000
|
0
|
0.0%
|
10000
|
9000
|
90.0%
|
|
5000
|
0
|
0.0%
|
14000
|
9000
|
64.3%
|
|
20000
|
0
|
0.0%
|
29000
|
9000
|
31.0%
|
|
30000
|
200
|
0.7%
|
39000
|
9200
|
23.6%
|
|
40000
|
550
|
1.4%
|
49000
|
9550
|
19.5%
|
|
80000
|
3350
|
4.2%
|
89000
|
12350
|
13.9%
|
|
120000
|
7950
|
6.6%
|
129000
|
16950
|
13.1%
|
|
160000
|
13950
|
8.7%
|
169000
|
22950
|
13.6%
|
|
200000
|
20750
|
10.4%
|
209000
|
29750
|
14.2%
|
|
320000
|
42350
|
13.2%
|
329000
|
51350
|
15.6%
|
|
above 320000
|
up to 20%
|
above 329000
|
up to 20%
|
However, once we consider the citizen income, the picture is entirely opposite. The table on the right shows the earned income plus a citizen income of $9,000 estimated for every citizen. The regressive tax is obvious and extreme. The poor bears an extremely heavy tax burden.
In Singapore, poverty can be totally eradicated if the political parties and the people go for a citizen-ownership democracy. The political parties, particularly the governing political party, and the people bear a collective responsibility for not eradicating poverty in Singapore.
Freedom from poverty is a fundamental human right - UNESCO
Freedom from poverty is a fundamental human right - UNESCO
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