Friday, April 20, 2012

LCY busts the Foreign Talents myth

I just read "Prof Lim clarifies on Economic Restructuring II (ERII)" from The Online Citizen, dated 18-Apr-2012. LCY had written,
"In 1991, our nonresident labour force was 300,800.This shot up to 686,200 in 2001 and to 1,157,000 in 2011. Of this foreign labour population, only 1.7% earned high enough that they are legally obliged to pay income tax."
Let me see, 1.7% of 1,157,000 = 19,669

So out of the 1+ million "foreign talent" (as the PAP government likes to call foreign labour in Singapore), less than 20K are actually "talented" enough to have jobs that require them to pay income tax. What about the other 1,137,331? Talents, really? Myth busted!


p.s. I would like to know, of the 19,669, what is the distribution curve of the top tax-rate that they fall into. That is, for each income tax rate, chart
(a) the number of foreign labour with that tax-rate, and
(b) the amount of tax collected from the group.

How much income tax do they bring to the Singapore government coffers?

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