Tax Implications
Currently, there are different tax implications on earning the same amount of money through ordinary income and through capital gains. Without capital gain tax, the tax burden falls entirely on some people while those that gain the same economic gain escape from being tax. Furthermore, the group that escapes this tax burden is those who can afford to bear the tax. Hence this indicates that the absence of capital gain tax causes injustice; people that are compared in the same circumstances are not treated equally. With the introduction of capital gain tax, this unfairness will be eliminated.
Revenue
Capital gain tax increases tax revenues and this might imply that revenue from earned income will increase. The reason for this is because many taxpayers who would have otherwise tried to convert or characterize taxable income as non-taxable capital gains no longer do so. This excess tax revenue is an indication that Singapore has more funds to develop Singapore which ensures Singapore’s growth. It aids the promotion of economic and social goals; more business use automation and mechanism since there are more funds to distribute as capital allowances.
Currently, there are different tax implications on earning the same amount of money through ordinary income and through capital gains. Without capital gain tax, the tax burden falls entirely on some people while those that gain the same economic gain escape from being tax. Furthermore, the group that escapes this tax burden is those who can afford to bear the tax. Hence this indicates that the absence of capital gain tax causes injustice; people that are compared in the same circumstances are not treated equally. With the introduction of capital gain tax, this unfairness will be eliminated.
Revenue
Capital gain tax increases tax revenues and this might imply that revenue from earned income will increase. The reason for this is because